The Organisation of the Petroleum Exporting Countries (OPEC) has noted that the production of petroleum products by the Dangote Petroleum Refinery has significantly decreased the importation of refined products from Europe.
In its Monthly Oil Market Report released on January 15, 2025, OPEC highlighted that the refining activities of the Lagos-based refinery are reshaping global gasoline trade flows, requiring international producers to seek alternative destination markets for their products.
“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.
“Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward,” the report partly read.
Nigeria, Africa’s most populous nation, continues to grapple with energy challenges, as its state-owned refineries remained non-operational for decades until recently. The country heavily depends on imported refined petroleum products, with the state-run Nigerian National Petroleum Corporation (NNPC) serving as the primary importer of these essential commodities.
Fuel shortages are a common occurrence, with petrol prices skyrocketing fivefold since President Bola Tinubu removed subsidies in May 2023. Prices jumped from approximately ₦200 per litre to around ₦1,000 per litre, exacerbating the struggles of citizens who rely on petrol to power their vehicles and generators due to Nigeria’s long-standing unreliable electricity supply.
In December 2023, Africa’s foremost industrialist, Aliko Dangote, launched operations at his $20 billion refinery located in Lagos. The facility, which currently processes 350,000 barrels of crude oil per day, aims to reach its full capacity of 650,000 barrels per day by the end of the year, despite initial setbacks from regulatory challenges.
The Dangote Refinery has started supplying diesel, petrol, and aviation fuel to marketers across the country, providing a glimmer of hope for addressing Nigeria’s energy woes.