Dangote Refinery Accounts for 13 Percent of Nigeria’s Crude Exports in 2024
The Dangote Petroleum Refinery retained 13% of Nigeria’s crude oil exports as domestic supply in 2024, according to a new report by Reuters. This marks a significant increase in Nigeria’s domestic share of oil exports compared to previous years and slightly reduced the country’s crude exports to Europe.
Despite being a major crude oil exporter, Nigeria imported 47,000 barrels per day of U.S. oil in 2024. Experts have described this as unusual for a country that exports large volumes of crude oil. The Nigerian National Petroleum Company Limited (NNPCL) is expected to continue servicing its crude-for-loan agreements until 2029, as domestic demand for crude by refineries rises.
NNPCL’s debt burden stems from various crude-for-loan deals that tie significant portions of Nigeria’s oil production to financial obligations. The report highlights how the Dangote refinery, along with other new refineries in the Global South, has reshaped global crude oil trade flows amidst sanctions on Russian oil.
The 650,000 barrels per day (bpd) capacity Dangote Refinery has contributed to the increase in Nigeria’s crude imports from the United States. In November 2024, the refinery received its first shipment of U.S. West Texas Intermediate (WTI) crude, with additional shipments boosting Nigeria’s imports from the U.S.
Globally, crude oil export volumes declined by 2% in 2024, marking the first drop since the COVID-19 pandemic. This decrease is attributed to weak demand growth, conflicts, sanctions, and the opening of new pipelines and refineries.
The Russia-Ukraine war significantly impacted oil trade, as European refiners reduced imports from Russia and turned to the U.S. and Middle East for supplies. However, attacks on vessels in the Red Sea during Israel’s war with Gaza increased shipping costs from the Middle East, prompting refiners to rely more on U.S. and Guyanese oil.
Meanwhile, Iraq’s exports fell by 82,000 bpd, and the UAE experienced a 35,000 bpd decline. Europe increased imports from Guyana by 162,000 bpd and from the U.S. by 60,000 bpd. While Europe and South America reduced purchases of Russian oil, India and China continued to embrace it.
Other factors reshaping global oil trade include Canada’s Trans Mountain pipeline expansion, declining oil production in Mexico, and a halt in Libyan oil exports.
