Analysts at Standards and Poor (S&P) has in the latest Global Commodity Insights reported that Nigeria had become the largest importer of refined petrol in Africa from Europe as the shipments of the commodity to the continent continue increase.
The analysts noted also that crude oil shipments from the Middle East to Europe had significantly increased following the E.U’s ban on Russian oil since April 2023, thereby necessitating the shipment of the surplus refined petrol to Africa, with Nigeria being the major destination.
The analyst’s report, however, warned that Nigeria’s petrol import from Europe was not expected to last long based on the Dangote refinery’s production capacity of 650,000-barrel per day.
The S&P experts, in the report noted that European petrol exporters would have to explore alternative destinations when the Dangote refinery fully comes on stream or reduce supply to Africa in general.
The report stated: “Right now, the Europe gasoline surplus is heading to Africa, with Nigeria the largest importer, but that is not expected to last as increased production from Nigeria’s new 650,000 b/d Dangote refinery will mean reduced import demand in Nigeria and more supplies in Europe.
“European gasoline exporters will have to find alternative destinations or reduce runs or a combination of both”, it added.
The Dangote refinery had started receiving crude oil for refining in December and commenced refining around February this year after months of post-commissioning delay since May 2023.
In addition, prospects for improved local refining capacity in Nigeria have brightened with the NNPCL entering into contracts to repair the state-owned refineries in Port Harcourt, Delta, and Kaduna.
In December, the Phase 1 of the Port Harcourt refinery with capacity to refine 60,000 barrels of crude oil daily was completed while the Delta and Kaduna refineries are currently at various stages of completion.
