India’s state refiners are lining up fresh cargoes of Nigerian crude for September and October. At the same time, Dangote refinery in Lagos is importing sizable volumes of U.S. oil to run its units during ramp-up.

It sounds like a contradiction, but there are clear commercial reasons on both sides and real implications for prices, jobs, and foreign exchange.

Why India Is Buying Nigerian Oil

India’s renewed interest reflects a shift back toward West African light-sweet grades as it diversifies away from Russian barrels. Nigerian streams such as Agbami are easy to process and deliver strong gasoline and diesel yields, making them attractive when the pricing and freight maths work.

For Nigeria, stronger offtake from India supports export receipts and helps clear cargoes quickly, especially when production and loadings are steady.

Why Dangote Uses U.S. Oil Now

Dangote’s choice to buy U.S. crude is about yields, reliability, and timing. Refineries pick feedstock that maximises output value, not national flags. Certain U.S. grades have recently been priced and configured in a way that suits the refinery’s product targets, particularly gasoline and reformate, during commissioning and early operations.

Import cargoes can also arrive on tighter schedules with predictable quality and financing terms. That matters when a new plant is calibrating units and cannot afford feedstock gaps. Domestic supply constraints and contract frictions in recent months have occasionally made foreign barrels the smoother option, at least in the short term.

The apparent “oil trade irony” is not necessarily bad for Nigeria. Selling more crude to India supports foreign-exchange inflows if prices and volumes hold. Keeping Dangote well supplied, regardless of crude origin, helps stabilise local fuel availability, which can reduce product import bills over time and ease pressure at the pump.

In a global market, barrels flow to where netbacks are strongest. Nigeria can export the grades that price best abroad while its refineries import blends that optimise local output, so long as the overall economics translate into cheaper, steadier fuel for Nigerians.

What Nigerians Should Watch Next

In the coming months, three signals will show whether this balance is working. First, watch the refinery’s crude slate. If the share of Nigerian grades rises, it suggests improved domestic supply deals and competitive pricing; if U.S. barrels remain dominant, the import advantage still holds.

Second, track India’s buying pace. More tenders for Nigerian grades would confirm that West Africa is a stable part of India’s diversification strategy. Third, look for clearer, longer-term supply contracts between local producers and Nigerian refineries. Stable agreements will be essential to keep throughput high and product prices predictable.