Nigeria’s importation of Premium Motor Spirit (PMS), commonly referred to as petrol,
dropped to an all-time low in June, primarily due to increased production from the Dangote
Petroleum Refinery. The refinery, with a capacity of 650,000 barrels per day, has begun
making a noticeable impact on Nigeria’s dependence on imported refined fuel, according to
newly released data.
A report by Argus, citing figures from energy tracking firm Kpler, revealed on Tuesday that
the Dangote refinery’s rising output has significantly reduced Nigeria’s demand for imported petrol, particularly from the European Union, the United Kingdom, and Norway countries that have traditionally been Nigeria’s key petrol suppliers.
According to Kpler’s data, June recorded the lowest volume of petrol shipments from Europe to Nigeria since the firm began tracking fuel flows. This sharp decline underscores the growing influence of local refining capacity in reshaping the nation’s fuel import patterns.
The data further shows that Nigeria’s reduced demand also affected the broader West
African market. The overall volume of European gasoline exported to West Africa fell to a
four-month low of 926,000 metric tonnes in June, a substantial drop from the 1.315 million
metric tonnes recorded in May. This figure also represents a 20 percent year-on-year
decline.
The drop in petrol imports is seen as a direct outcome of the Dangote refinery’s gradual
scale-up, which began operations earlier this year and has been supplying petrol, diesel, and jet fuel to local and regional markets. The refinery’s ramp-up is expected to continue altering the landscape of fuel supply across Nigeria and potentially the wider West African region.
Industry analysts note that as local refining capacity grows, Nigeria could become
increasingly self-reliant in meeting its fuel needs, easing pressure on foreign exchange and
reducing the vulnerability of the domestic market to international price shocks.
In summary, June’s record-low petrol imports highlight the shifting dynamics in Nigeria’s fuel
supply chain, driven by the operational progress at the Dangote refinery and a move towards
greater energy independence.
According to the report, Nigeria, traditionally the largest importer of gasoline in West Africa,
was overtaken by Togo in June as the Dangote Petroleum Refinery reached its highest
monthly production level since beginning operations. The country is nearing a significant
shift in its petrol trade dynamics, with data showing a sharp 56% drop in fuel imports from
Europe, falling to 231,000 metric tonnes the lowest recorded by Kpler.
In addition to the European imports, Nigeria brought in 28,000 metric tonnes of petrol from
offshore Lome and 12,000 metric tonnes from Houston, bringing total imports for June to
271,000 metric tonnes, or roughly 363.4 million litres. Meanwhile, the Dangote refinery
exported a record 252,000 metric tonnes of petrol in the same month, signaling a growing
influence in the regional fuel market.
These developments mark a major turning point, as Nigeria’s reliance on imported petrol
continues to decline, driven by increased domestic refining capacity from the Dangote plant.
The shift could potentially transform the country from a major fuel importer to a regional
supplier.
