Nigeria’s Petrol Imports Plunge to 8-year Low as In-country Refining Surges
Nigeria’s imports of petrol are on course for an eight-year low as the country’s new mega-refinery pushes out foreign suppliers, boosting the nation’s fuel independence.
Shipments into the West African nation stood at about 110,000 barrels per day during January 1 to January 24 this year, data compiled by Bloomberg from analytics firm Vortexa Ltd. showed.
If that rate were to continue for the rest of the month, the country’s imports, most of which come from Europe, the report said, would hit their lowest since 2017.
The Dangote Refinery, located in Lekki, Lagos, which is disrupting global fuel sales, is a state-of-the-art oil facility that has revolutionised the country’s oil industry. The refinery, owned by the Dangote Group, is the brainchild of Africa’s richest man, Aliko Dangote.
The $20 billion Dangote refinery, equipped with cutting-edge technology, including advanced crude distillation units, catalytic cracking units, and hydroprocessing units, has a capacity to process 650,000 barrels of crude oil per day, making it the largest refinery in Africa.
As the refinery continues to ramp up production, Nigeria is set to become self-sufficient in petroleum products, reducing reliance on imports, and saving the country the roughly $10 billion spent on fuel imports yearly.
Before the refinery, Nigeria’s fuel importation problem had been a longstanding challenge for the country. However, recent developments suggest that the situation is improving. With the Dangote Refinery ramping up production, Nigeria’s petrol imports have plummeted significantly.
