Nigeria Reduces Petrol Imports Amid Refinery Production Boosts

Nigeria has experienced a significant decline in petrol imports at the beginning of October 2024, as the Dangote Refinery increases its production capacity to cater to local demand. This development was highlighted in a ship-tracking report by S&P Global Commodity Insights, released on Tuesday.

The report details a notable reduction in petrol imports. During the first week of October, the country received a mere 280,400 barrels of gasoline and blend stock through a single Medium-Range vessel. This marks a stark decline from the average weekly import of 1.3 million barrels recorded in August.

Similar trends were observed during the second week of October, with one tanker transporting 290,567 barrels from Antwerp to Lagos. The combined shipments for these two weeks are modest when compared to the 12 cargoes dispatched in the early weeks of August and September.

Since October 8th, no new gasoline shipments have been reported in Nigeria. This interruption in petrol flow from Northwest Europe to West Africa is largely attributed to the increased domestic production by the Dangote Refinery.

According to a trade source, “There is no schedule for gasoline coming from Europe to Nigeria at the moment. The rest will have to come from whatever is in the Offshore Lome market.” The source suggested that the new refinery might only be able to supply up to a quarter of the domestic market demand.

Despite this transition towards self-sufficiency in fuel production, the report warns that Nigeria could potentially face a significant fuel shortage without continued importation. Traders have voiced concerns regarding the possibility of a future supply deficit.