Dangote Refinery Cuts Nigeria’s Import Reliance- OPEC
The Organisation of the Petroleum Exporting Countries (OPEC) said the Dangote Refinery has significantly reduced Nigeria’s reliance on imported European refined products.
In its Monthly Oil Market Report published on January 15, 2025, OPEC highlighted that the shift could disrupt traditional gasoline flows, forcing international markets to seek alternative destinations for surplus volumes.
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“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market,” the report stated.
It further explained that Nigeria, a country historically dependent on fuel imports to meet its energy needs, is freeing up gasoline volumes in global markets due to increased local production.
OPEC added that this development will necessitate “new destinations and flow adjustments for the extra volumes going forward.”
Source: Data compiled by Bloomberg
For decades, Nigeria, Africa’s most populous country, grappled with fuel importation challenges, largely due to underperforming state-owned refineries. However, recent reforms are paving the way for energy independence and a more sustainable future.
The Nigerian National Petroleum Company (NNPC) Limited has long served as the main importer of refined petroleum products, a dependency now set to change with ongoing infrastructure upgrades and private-sector investments like the Dangote Refinery.
In May 2023, President Bola Tinubu implemented a significant economic reform by removing the fuel subsidy, a move aimed at redirecting resources toward critical development projects. While petrol prices initially surged, the policy lays the groundwork for long-term stability by encouraging local production and reducing reliance on global markets.
These changes, combined with efforts to improve the national power grid, signal a transformative period for Nigeria’s energy sector, promising a more resilient economy and improved quality of life for its citizens.
The commencement of the Dangote Petroleum Refinery in December 2023 marked a turning point.
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Located in Lagos, the $20 billion facility, built to process 350,000 barrels of crude daily, is gradually increasing its output, with a target to achieve a full capacity of 650,000 barrels per day by the end of 2025.
Despite initial delays caused by regulatory hurdles, the refinery has begun supplying diesel, petrol, and aviation fuel to local marketers.
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