The emergence of the Dangote refinery in September has resulted to Nigeria witnessing an impactable shift in its oil market. With this new Dangote mega-refinery, the country's petrol imports have reached its lowest levels in 8 years! The $20.5 billion facility stands as Africa's largest refinery and outstrips the combined capacity of Europe's ten largest refining plants, including the Pernis Refinery. As Nigeria begins to reduce its dependence on imported petroleum products this shift could disrupt the long-standing gasoline trade from Europe to Africa.
The refinery has a processing capacity of 650,000 barrels per day. Furthermore, Data from Bloomberg compiled by analytics firm Vortexa Ltd. indicates that imports averaged around 110,000 barrels per day between January 1 and 24, primarily sourced from Europe. If this trend continues, January 2025 will see imports at their lowest since 2017. The importance of this transition cannot be overemphasised.
The Dangote refinery supports and ups Nigeria's economic framework and this drives the nation's development. Crude oil constitutes approximately 90% of Nigeria's foreign exchange earnings and contributes up to 65% of government revenue. The product is used as a component in many of the products that netizens use every day, including plastics, paints, and cosmetics. With this, the refinery is expected to reshape the local oil market and potentially end the reliance on European gasoline imports as it increases production.
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