The Organisation of the Petroleum Exporting Countries (OPEC), noted that the production of petroleum products by the Dangote Petroleum Refinery is reducing the importation of refined products from Europe.
In its Monthly Oil Market Report published on January 15, 2025, OPEC stated that the Lagos-based refinery’s refining activities are reshaping global gasoline trade flows.
“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,” the report highlighted.
OPEC added, “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.
This will require new destination markets and flow adjustments for the surplus volumes.”
Nigeria, Africa’s most populous nation, has long grappled with energy challenges, including non-operational state-owned refineries and heavy dependence on imported refined petroleum products.
The Nigerian National Petroleum Corporation (NNPC) has historically served as the primary importer of these essentials.
Since President Bola Tinubu’s removal of petrol subsidies in May 2023, fuel prices have skyrocketed from approximately ₦200/litre to around ₦1,000/litre, exacerbating the difficulties faced by Nigerians who rely on petrol to power vehicles and generators amid inconsistent electricity supply.
In December 2023, Africa’s leading industrialist, Aliko Dangote, launched operations at his $20 billion refinery in Lagos, which has a production capacity of 350,000 barrels per day.
The refinery aims to achieve its full capacity of 650,000 barrels per day by the end of 2025.
Despite initial regulatory hurdles, the Dangote Refinery has started supplying diesel, petrol, and aviation fuel to marketers across the country, marking a significant milestone in Nigeria’s quest for energy self-sufficiency.
