Analysts at S&P Global Commodity Insights revealed that Nigeria has become the largest importer of refined petrol in Africa as petrol shipments from Europe to Africa increase.
Crude oil shipments from the Middle East to Europe have increased significantly following the E.U.’s ban on Russian oil since April 2023.
As a result, surplus refined petrol ships from Europe are heading to Africa with Nigeria the major destination.
However, the report cautioned that Nigeria’s petrol import from Europe is not expected to last long with full production from the 650,000-barrel Dangote refinery.
It noted that European petrol exporters will have to find alternative destinations when that happens or reduce supply to Africa in general.
“Right now, the Europe gasoline surplus is heading to Africa, with Nigeria the largest importer, but that is not expected to last as increased production from Nigeria’s new 650,000 b/d Dangote refinery will mean reduced import demand in Nigeria and more supplies in Europe. European gasoline exporters will have to find alternative destinations or reduce runs or a combination of both.”
Nigeria has made concerted efforts in the past few years to reduce refined petroleum imports some of which have begun to bear fruit. In 2021, the NNPCL decided to purchase a 20% stake in the Dangote refinery for $1.036 billion.
Also, the NNPCL entered contracts to repair the state-owned refineries in Delta, Rivers, and Kaduna. In December, phase 1 of the Port-Harcourt refinery was completed which will refine around 60,000 barrels of crude oil daily while the Delta and Kaduna refineries are at various stages of completion.
The 650,000-barrel capacity Dangote refinery began receiving crude oil for refining in December and started refining around February despite delays since its commissioning in May 2023.
Since the removal of the petrol subsidy in June, the federal government has sought to reduce the importation of crude oil as a measure to stabilize local prices and reduce FX demand on imports.
