Dangote refinery petrol export to the US marks a milestone, but Nigerian fuel marketers still rely on imports despite local refining capacity
The Dangote refinery petrol export to the United States has sparked debate in Nigeria’s energy sector, with fuel marketers still leaning heavily on imports despite the $20bn Lagos-based refinery’s growing capacity.
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According to S&P Global, a vessel carrying 300,000 barrels of Premium Motor Spirit (PMS) departed from Lekki on August 26 and is scheduled to arrive in New York and New Jersey on September 12.
This marks the refinery’s first petrol shipment to the US, expanding beyond African markets into global trade routes.
However, Nigerian fuel marketers continue to import more than a billion litres of petrol monthly, bypassing Dangote’s 650,000-bpd facility.
Regulatory data show that in June alone, only about 455 million litres were supplied locally by Dangote, while imports accounted for the majority.
Aliko Dangote insists his refinery can make Nigeria a net exporter of fuel and reduce dependence on foreign supplies.
He has urged the government to expand the “Nigeria First” policy to cover petroleum products, warning that the influx of subsidised and sometimes toxic imports from Russia and other countries undermines local refiners.
Despite this, marketers argue their decisions are driven by profit margins. Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria, welcomed the refinery’s exports but maintained that traders must buy from sources that offer better deals.
“If buying from Dangote gives us an edge, we’ll buy from him. If not, imports will continue,” he said.
Industry analysts say the tension reflects a deeper challenge: balancing Nigeria’s local refining ambitions with entrenched international supply chains.
While the refinery has already exported over 1.3 billion litres of petrol to global markets, domestic uptake remains limited due to price competition and logistics.
For Dangote, the US deal is a milestone that underscores his refinery’s global competitiveness.
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For Nigerians, the debate over whether to prioritise imports or local refining remains unresolved, even as billions of dollars’ worth of fuel continues to flow in and out of the country.
