The Dangote Petroleum Refinery’s landmark purchase of crude oil from the United Arab Emirates could strengthen trade relations between Nigeria and the UAE, according to the Lagos Chamber of Commerce and Industry and the Centre for the Promotion of Private Enterprise. They stressed, however, that the transaction remains a commercial decision rather than a diplomatic arrangement.

Their assessment follows Dangote refinery’s first-ever purchase of two cargoes of UAE crude, marking the first time the 700,000-barrels-per-day refinery has sourced feedstock from the Middle East as it diversifies crude supplies amid persistent domestic shortages.

The development comes months after Nigeria and the UAE signed the Comprehensive Economic Partnership Agreement, under which Nigeria eliminated tariffs on 6,243 UAE products, while the UAE removed tariffs on 7,315 Nigerian products to deepen bilateral trade and investment.

In a phone interview with The PUNCH, the President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the refinery’s decision reflected sound business judgment driven by market opportunities.

“It’s very straightforward. It’s a business. When you are running your business, you always look at opportunities. Opportunity drives business. We should look at how much the UAE suppliers are selling to Dangote.

If the refinery has seen a better deal somewhere, we cannot say because of patriotism it must buy from Nigeria,” Kupoluyi said.

He noted that crude procurement involves several commercial considerations, including pricing, quality, and the range of petroleum derivatives different crude grades can produce.

The LCCI president explained that Nigeria’s crude industry has become more complex because of the participation of international oil companies and commercial realities in the global market.

“The grade of the crude is different. There are derivatives you may get by buying from those areas. Local production is not as local as we think because it involves international companies that have invested heavily and want to recover their investments,” he remarked.

Kupoluyi maintained that local refiners should remain free to source crude from anywhere, provided the transactions align with Nigeria’s national interest.

“It is an economic decision,” Kupoluyi stressed. “The refinery owners are business people, and they have shareholders. If the crude is available in Nigeria and suits their requirements, they will buy it. But if sourcing elsewhere benefits the business and does not conflict with Nigeria’s national interest, then it is a business decision.”

He added that increasing refining capacity in Nigeria could eventually require more crude than domestic production alone can supply.

“If more refineries are built in Nigeria, the crude produced in Nigeria may not even be enough for all of them. That is healthy competition. Before now, we depended on imported petroleum products, but today we have choices. We have our own refinery that can buy crude from the UAE, America or elsewhere. The government should ensure national interest is protected while allowing businesses to make sound commercial decisions,” he added.

Similarly, in a phone interview with The PUNCH, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the refinery’s latest procurement reflected commercial realities rather than diplomacy.

“This is a business decision and the Dangote refinery is a very big refinery. The NNPC cannot meet Dangote’s demands in terms of crude allocation, so it has to source crude from elsewhere that is commercially competitive. If the quality standard is good and the price is good, why not? It is purely a business decision; it is not a diplomatic thing,” Yusuf said.

He, however, noted that increased commercial exchanges could complement the broader Nigeria-UAE economic relationship.

“If you have more trade, it is good for relationships between countries. The primary thing is the business consideration, but the fact that you are having more trade is also good for our relationship, especially now that Nigeria and the UAE have signed a trade protocol,” he said.

Yusuf said the transaction further underscored longstanding concerns by domestic refiners over inadequate local crude supply.

“Local crude has accounted for only about 30 per cent of Dangote Refinery’s feedstock from the beginning because domestic availability is not meeting demand. There are joint venture arrangements, previous forward sales, and commercial terms that make it necessary to buy elsewhere. If the terms offered locally are not favourable, the refinery has to source crude abroad,” he said.

He also said refiners worldwide routinely import crude regardless of whether their countries produce oil. “It should be part of the business model of any refinery to source crude locally or internationally. There are countries with some of the world’s biggest refineries that do not produce crude at all. What matters is that the economics make sense. This is business, not politics or diplomacy,” Yusuf declared.

Recall that in a recent interview with The PUNCH, the UAE Minister of Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi, stated, “The UAE’s economic fundamentals remain exceptionally strong. In 2025, non-oil foreign trade reached a record $1.03tn, representing a 26 per cent year-on-year increase.

“The UAE continues to attract record levels of foreign direct investment, and our financial system remains among the most well-regulated in the world. Our strategy is to ensure the UAE remains the most attractive, stable, and well-connected platform for international trade and investment. The data confirms we are succeeding.”

Dangote refinery recently secured two UAE crude cargoes after shipping conditions in the Middle East improved following easing geopolitical tensions, adding another source of supply to its existing purchases from Nigeria, other African producers, and the United States.

The refinery also continues to receive between 13 and 15 cargoes of Nigerian crude monthly under its supply arrangement with the Nigerian National Petroleum Company