Channels Television, through its official X handle, has announced a striking revelation from the Organization of the Petroleum Exporting Countries (OPEC). In its Monthly Oil Market Report, published on January 15, 2025, the global energy body highlighted the significant impact of gasoline production at Nigeria’s Dangote Refinery on the European market.
OPEC emphasized that the refining efforts of the Lagos-based mega refinery are reshaping the international gasoline trade, as volumes produced locally in Nigeria now create ripple effects across global markets.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote Refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market,” the report stated.
It further explained, “Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets, which will call for new destinations and flow adjustments for the extra volumes going forward.”
The report signifies a turning point for Nigeria, Africa’s largest economy and most populous nation. For decades, the country’s state-owned refineries have remained non-operational, rendering it heavily dependent on imported refined petroleum products. The state-run Nigerian National Petroleum Corporation Limited (NNPC) has shouldered the bulk of these imports, often leading to chronic inefficiencies and financial strain.
However, the emergence of the privately-owned Dangote Refinery, considered one of the largest in the world, is gradually reversing this trend. Its production capacity, reported to be 650,000 barrels per day, is not only meeting domestic fuel demands but also creating surplus volumes for export. This shift is transforming Nigeria from an import-dependent nation to a strategic player in the global energy supply chain.
Despite these promising developments, Nigeria’s energy landscape remains fraught with challenges. The removal of the petrol subsidy in May 2023 by President Bola Tinubu, which saw fuel prices soar from around ₦200/litre to approximately ₦1000/litre, has significantly strained the populace. Citizens who depend on petrol for their vehicles and generators—due to the nation’s notoriously unreliable power supply—have been grappling with the economic burden.
Fuel queues, a familiar sight across Nigeria, are a constant reminder of the enduring struggle for energy security. However, the Dangote Refinery offers a glimmer of hope for the nation’s future, promising not only to stabilize domestic fuel supply but also to bolster Nigeria’s economic clout on the global stage.
As OPEC’s report suggests, the Dangote Refinery’s refining operations are not just a milestone for Nigeria but also a disruptor in the international energy landscape, compelling major markets like Europe to adapt to new realities. The world is watching as this monumental project reshapes the narrative for Nigeria and the global gasoline trade.
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