The Dangote Refinery’s Impact on Nigeria’s Crude Oil Exports in 2024
In 2024, the Dangote Refinery made a significant impact on Nigeria’s crude oil exports, retaining 13% of the country’s total exports. This marked a substantial increase from just 2% in the previous year, according to a report by Reuters. The shift not only reduced Nigeria’s exports to Europe but also boosted the country’s domestic share of oil supply.
Despite Nigeria being a major net exporter of crude oil, the country surprisingly imported 47,000 barrels per day of US oil in 2024. This move raised eyebrows among experts, as it is uncommon for an oil-exporting nation to rely on imports. The Dangote Refinery, with its impressive capacity of 600,000 barrels per day, played a crucial role in this trend. The refinery received multiple shipments of US West Texas Intermediate (WTI) oil due to the Nigerian National Petroleum Company’s inability to meet its supply requirements.
The year 2024 also witnessed a 2% decline in global crude oil exports due to weak demand and changes in trade routes. Conflicts in regions like Ukraine and the Middle East, coupled with sanctions on Russian and Iranian oil, led to significant shifts in global oil supply chains, impacting both exports and imports.
Looking ahead to 2025, the global oil market remains uncertain. Experts predict a surge in demand from India, while some countries are increasingly exploring alternative energy sources such as gas and renewables. As the industry continues to evolve, it will be interesting to see how these trends shape the future of the oil market.
