In a notable development within the global energy landscape, Indian state refiners are significantly increasing their imports of Nigerian crude oil, reinforcing India’s status as one of Africa’s top crude purchasers. According to trade sources, Indian Oil Corporation (IOC) recently secured one million barrels of Nigeria’s Agbami crude for September delivery, awarded to Trafigura. Between September and October, IOC and Bharat Petroleum cumulatively acquired over 22 million barrels of non-Russian crude, including Nigerian grades, highlighting a strategic push to diversify amid geopolitical pressures.
Simultaneously, Nigeria’s private energy sector is evolving. The Dangote Petroleum Refinery, the largest single-train refinery in Africa, has ramped up imports of U.S. West Texas Intermediate (WTI) crude to supplement limited domestic feedstock. In July, the refinery imported at least five million barrels of U.S. crude (around 161,000 bpd), continuing a buying spree that follows a record June intake. The shift is driven by competitive pricing and the need to support ramping operations as the refinery moves toward roughly 85% capacity utilisation.
These parallel developments underscore Nigeria’s integration into both Atlantic-basin and Asian energy supply chains. India’s heightened demand injects valuable foreign exchange and strengthens bilateral trade relations, while Dangote’s sourcing flexibility cements its potential as a regional refining and supply hub. Moreover, in July 2025, Nigeria’s oil production surged to approximately 1.78 million bpd, the highest since late 2024, propelled by improved security and upstream stability.
Key Takeaways:
- India: Accelerating imports of Nigerian crude as part of a broader non-Russian diversification strategy.
- Dangote Refinery: Intensifying reliance on U.S. crude to bolster processing amid domestic supply constraints.
- Broader Implications: These shifts may reshape crude trade routes, pricing dynamics, and strategic energy partnerships across Africa and Asia.
