Nigeria Loses Africa Fuel Import Lead as Dangote Refinery Boosts Output
Nigeria Loses Africa Fuel Import Lead as Dangote Refinery Boosts Output

Nigeria Loses Africa Fuel Import Lead as Dangote Refinery Boosts Output

News summary

Nigeria has ceased being Africa's largest importer of refined petroleum products due to the operational ramp-up of the Dangote Refinery, a massive 650,000-barrel-per-day facility that began large-scale production in 2024. This development marks a significant shift as Nigeria, despite being a leading crude oil producer, had long relied on importing refined fuels due to dysfunctional state-owned refineries and underinvestment. The Dangote Refinery's increased output has significantly reduced Nigeria's need for fuel imports, easing pressure on the country's foreign reserves and currency. Meanwhile, South Africa has taken over as the continent's largest fuel importer amid a decline in its domestic refining capacity caused by accidents and lack of investment. Industry experts, including CITAC's executive director, highlight that South Africa imported 4.2 million tons of refined products in early 2025 compared to Nigeria's 3.1 million tons, with projections showing South Africa will import more than twice as much as Nigeria by year's end. This shift not only strengthens Nigeria's trade position but also reflects broader changes in Africa's energy landscape driven by private sector investment and evolving government policies.

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