The Organisation of the Petroleum Exporting Countries (OPEC) has stated that the Dangote Petroleum Refinery’s production of petroleum products has decreased the need for importing refined goods from Europe.
In its Monthly Oil Market Report released on January 15, 2025, OPEC noted that due to the refining activities at this Lagos-based facility, gasoline that would typically be marketed internationally will need to find alternative destinations.
According to the report, “The ongoing ramp-up of operations at Nigeria’s new Dangote refinery and its gasoline exports to the global market will likely put additional pressure on the European gasoline market.”
“Nigeria, which has historically depended on imports to satisfy its domestic fuel requirements, is likely to continue producing gasoline, thereby freeing up international gasoline supplies and necessitating adjustments in destination markets for the increasing volumes,” the report stated.
Nigeria, the most populous country in Africa, grapples with energy issues, as its state-owned refineries had been non-operational for decades until recently. The nation relies heavily on imported refined petroleum products, with the state-run NNPC being the primary importer of these critical goods.
Fuel shortages are common, and petrol prices have surged fivefold since President Bola Tinubu removed subsidies in May 2023, climbing from approximately ₦200/litre to around ₦1000/litre. This situation has exacerbated hardships for citizens who use petrol to fuel vehicles and generators due to long-standing unreliable electricity supply.
In December 2023, Aliko Dangote, Africa’s foremost industrialist, launched operations at his $20 billion refinery in Lagos, which has the capacity to process 350,000 barrels per day.
Initially hindered by regulatory challenges, the refinery aims to reach its full capacity of 650,000 barrels per day by the year’s end and has already started supplying diesel, petrol, and aviation fuel to domestic marketers.
