Nigeria’s Petrol Imports Plunge to 8-year Low as In-country Refining Surges

•Storage in Europe reaches record high as impact of Dangote refinery becomes apparent 

•Oil price sinks, continues dance to Trump’s rhythm

Emmanuel Addeh in Abuja

Nigeria’s imports of petrol are on course for an eight-year low as the country’s new mega-refinery pushes out foreign suppliers, boosting the nation’s fuel independence.

Shipments into the West African nation stood at about 110,000 barrels per day during January 1 to January 24 this year, data compiled by Bloomberg from analytics firm Vortexa Ltd. showed.

If that rate were to continue for the rest of the month, the country’s imports, most of which come from Europe, the report said,  would hit their lowest since 2017.

The Dangote Refinery, located in Lekki, Lagos, which is disrupting global fuel sales, is a state-of-the-art oil facility that has revolutionised the country’s oil industry. The refinery, owned by the Dangote Group, is the brainchild of Africa’s richest man, Aliko Dangote.

The $20 billion Dangote refinery, equipped with cutting-edge technology, including advanced crude distillation units, catalytic cracking units, and hydroprocessing units, has a capacity to process 650,000 barrels of crude oil per day, making it the largest refinery in Africa.

As the refinery continues to ramp up production, Nigeria is set to become self-sufficient in petroleum products, reducing reliance on imports, and saving the country the roughly $10 billion spent on fuel imports yearly.

Before the refinery, Nigeria’s fuel importation problem had been a longstanding challenge for the country. However, recent developments suggest that the situation is improving. With the Dangote Refinery ramping up production, Nigeria’s petrol imports have plummeted significantly.

THISDAY recalls that in October, 2024,  the country saw a significant decrease in petrol imports, with only 280,400 barrels  and blend stock entering the country, compared to August’s weekly average of 1.3 million barrels. That number has now further fallen to 110,000 barrels per day.

“A large part of the slowdown in Nigeria’s gasoline (petrol) imports is due to the ramp up of the Dangote refinery,” Vortexa analyst, Samantha Hartke, told Bloomberg. “Northwest Europe will have to find alternative homes for its gasoline supplies,” Hartke added.

Dangote is bigger than any other refinery in Europe or Africa and has been touted as a way for Nigeria — long reliant on imports of gasoline — to become less dependent on foreign supplies.

Stockpiles of petrol held in independent storage in Amsterdam-Rotterdam-Antwerp — a key exporting hub for barrels to Nigeria — have meanwhile hit a record high, according to figures from Insights Global.

Meanwhile, oil fell below $73 a barrel yesterday after President Donald Trump’s pick for commerce secretary, Howard Lutnick, suggested tariffs on Canada and Mexico are not a done deal during a Senate confirmation.

Expectations that the tariffs will go into effect this weekend had earlier spurred a rally in oil futures and pushed the discount for Canadian crude to the lowest in six months.

“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs in focus as they go into effect on Saturday,” said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday’s price decline represents “a sour sentiment across an overall range-bound market,” he added.

Crude started 2025 higher as US sanctions against Russia lifted prices, but trade-war concerns and poor economic data from China have largely erased the year’s gains.

The rollout of Trump’s policy agenda has the potential to roil markets further, with the US president calling on the Organisation of Petroleum Exporting Countries (OPEC) to help lower crude prices.

The producer cartel is set to discuss Trump’s plans to increase US oil production at its next meeting on February 3.

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