Nigeria’s petrol imports are on track to hit an 8-year low, as the Dangote refinery boosts the country’s fuel self-sufficiency
[dropcap]N[/dropcap]igeria’s petrol imports are on track to hit their lowest volume in eight years, as the Dangote Petroleum Refinery continues to ramp up production, significantly reducing the nation’s reliance on foreign fuel.
Also read: Dangote refinery expands crude storage capacity by over 6 million barrels
In a significant development for Nigeria’s energy sector, petrol imports are on track to reach their lowest volume since 2017.
This shift comes as a result of the operations of the Dangote Petroleum Refinery, the country’s newly established mega-refinery, which is steadily reducing Nigeria’s dependence on foreign fuel sources.
According to a recent Bloomberg report, citing data from analytics firm Vortexa Ltd, the country has seen a dramatic decrease in petrol imports.
In January 2025, shipments stood at around 110,000 barrels per day, amounting to 17.49 million litres. If this rate continues, Nigeria’s total petrol imports for the month will be at their lowest level in eight years, significantly down from the high of 420,000 barrels imported in November 2022.
The reduction in imports is attributed largely to the operations of the Dangote refinery, which has a capacity of 650,000 barrels per day.
This shift marks a significant step towards greater energy independence for the country. With a growing focus on fuel self-sufficiency, Nigeria is aiming to reduce its reliance on foreign suppliers, particularly from Europe, the Middle East, Russia, Asia, and North America.
Analysts have noted that the decline in Nigeria’s petrol imports has had a ripple effect on oil traders in Northwest Europe.
Samantha Hartke, an analyst at Vortexa, pointed out that the slowdown in Nigeria’s gasoline imports has forced traders to find alternative markets for their supplies.
“A large part of the slowdown in Nigeria’s gasoline imports is due to the ramp-up of the Dangote refinery,” Hartke explained.
This shift in fuel sourcing comes as stockpiles of gasoline in key exporting hubs, such as Amsterdam-Rotterdam-Antwerp, have reached record highs, according to Insights Global.
The Dangote refinery, which is already Africa’s largest and the largest refinery in Europe, is playing a key role in Nigeria’s move towards reducing its dependence on imports.
However, despite its potential, the Dangote refinery has faced challenges, particularly around sourcing sufficient crude oil.
The Nigerian National Petroleum Corporation (NNPC) has struggled to provide the required supply of local crude oil, leading the Dangote refinery to seek imports.
Currently, the NNPC is unable to meet the refinery’s daily requirement of 350,000 barrels of crude from its own supply, and the facility is importing more crude from overseas.
According to reports, about 12 million barrels of crude are expected to arrive in Nigeria by February.
The challenges associated with local crude supply come in light of President Tinubu’s directive in July, which ordered the NNPC to sell crude oil to local refineries in naira.
In October, the first phase of the naira-for-crude deal commenced, with crude oil being sold exclusively to the Dangote refinery in naira.
In response to the growing demand for fuel, the Dangote refinery is also building eight additional storage tanks to hold imported crude, securing a backup supply in case local sources remain insufficient.
With its current production capacity of 500,000 barrels per day, Dangote is preparing to diversify its crude supply channels to ensure consistent operations.
Looking ahead, Nigeria’s refining landscape is expected to evolve further with the resumption of operations at the Port Harcourt and Warri refineries.
As these facilities come online, they will also be considered for the naira-for-crude scheme, expanding the country’s refining capabilities.
Source: Read more at gazettengr.com
