Nigeria is home to the world's largest single-train crude oil refinery—but there's a problem

Nigeria's oil industry is entering a new phase. The country's biggest challenge is no longer a lack of refining capacity but producing enough crude oil to supply its refineries.

As domestic refining expands, Nigeria must balance crude supplies for local processors, export commitments, and crude-backed loan agreements.

Math behind the crude oil deficit

At an estimated 85% operating capacity, the Dangote Petroleum Refinery needs about 552,500 barrels of crude oil per day. That is roughly 35% of Nigeria's total daily crude production.

Nigeria produced 1.56 million barrels per day in June. After supplying the Dangote refinery, about 1.01 million barrels per day remains for smaller domestic refineries, export commitments, and crude-backed financing deals.