Nigeria’s Petrol Imports Hit Eight-Year Low Thanks to Dangote Refinery
Nigeria is experiencing a significant decrease in petrol imports, reaching levels not seen in eight years. This decline can be attributed to the country’s new mega-refinery, the Dangote refinery, which is reducing its reliance on foreign suppliers and boosting fuel independence.
Data compiled by Bloomberg from analytics firm Vortexa Ltd. reveals that Nigeria’s petrol shipments averaged around 110,000 barrels per day in the first 24 days of January. If this trend continues for the rest of the month, imports, predominantly sourced from Europe, will hit their lowest point since 2017.
Samantha Hartke, an analyst at Vortexa, attributes a large part of the decrease in Nigeria’s gasoline imports to the ramp-up of the Dangote refinery. She notes that Northwest Europe will need to find alternative destinations for its gasoline supplies.
The Dangote refinery, owned by Africa’s richest man, has been hailed as a game-changer for Nigeria, a country that has long relied on gasoline imports. With a processing capacity of 650,000 barrels per day, it is the largest refinery in Africa, surpassing even Europe’s top 10 refining facilities like the Pernis Refinery, which has a capacity of 404,000 barrels per day.
OPEC reports that Dangote’s oil operations in Nigeria are starting to disrupt the European oil market. Economists speculate that the Dangote refinery could potentially put an end to the longstanding gasoline trade from Europe to Africa, which is estimated to be worth $17 billion annually.
Meanwhile, stockpiles of gasoline in Amsterdam-Rotterdam-Antwerp, a key hub for exports to Nigeria, have reached a record high, according to data from Insights Global.
The impact of the Dangote refinery on Nigeria’s petrol imports showcases the country’s strides towards fuel independence and reduced reliance on foreign suppliers. This shift not only benefits Nigeria’s economy but also has ripple effects on the global oil market.
