In the first half of 2025, Nigeria, despite being a large oil producer, recorded a sharp increase in crude oil imports: by 26.5%, to almost 5.7 million metric tons. This jump has widely been attributed to the operations of the Dangote Petroleum Refinery, the largest refinery in Africa, which imports crude oil from many countries, including the US, Brazil, Angola and Equatorial Guinea.

This ambitious project, which is still overcoming sustained opposition and pressure from the big market players, has been attempting from the very start to play a role in strengthening the country’s sovereignty – by refining oil so that Nigeria does not have to import refined products.

It’s ironic that Nigeria, a major oil-producing and exporting nation and a member of OPEC and OPEC , has been dependent on importing refined petroleum products at a rate of approximately 500,000 barrels per day.

Exploration for crude oil commenced in Nigeria in 1937 when Shell D’Arcy (a joint venture between the Royal Dutch Shell Group and British Petroleum) was granted the sole concessionary rights over the whole country. Crude oil was first discovered in commercial quantities in Oloibiri in present-day Bayelsa State in 1956 when Shell D’Arcy drilled the first successful well. That same year, Shell D’Arcy changed its name to Shell-BP Petroleum Development Company of Nigeria Limited. It continued development activities in 1957, and the first shipment of crude oil from Nigeria took place in 1958.

As the economy of the nation grew, demand for petroleum products was met with imports. Shortly after Nigeria gained independence from Britain in 1960, the Shell-BP Petroleum Development Company found an opportunity to meet the product needs of the country. It embarked on a project to build the nation’s first refinery, near Port Harcourt.

The Shell-BP Refinery (38,000 barrels per day), a simple hydro-skimming plant, was completed and commissioned in 1965. The Nigerian government acquired a 50% shareholding under a participatory agreement with Shell-BP. It was registered in 1972 when the government of Nigeria increased its shareholding to 60%, but it remained a joint venture under private sector control and........

© RT.com