Dangote Refinery Reshapes Nigeria's Energy Market, Reducing Petrol Imports

Nigeria's status as Africa's top petrol importer shifts as Dangote Refinery impacts the energy market. Despite being the continent's largest crude oil producer, Nigeria was the biggest importer of petrol, spending $20 billion annually.

However, with the full operation of the $20 billion Dangote Refinery in late 2024, Nigeria now produces petrol, diesel, and jet fuel, meeting 60% of domestic demand. This shift has stabilized pump prices, led to fuel exports to Ghana and Namibia, and saved Nigeria close to $10 billion annually in foreign exchange.

In contrast, South Africa, now Africa's largest petrol importer, faces challenges in its refining sector. The Sapref refinery has been mothballed, leading to increased reliance on imports.