Business
Dangote Refinery Ending Nigeria’s Dependence on Imported Fuel —–EIU
Dangote Petroleum Refinery & Petrochemicals is fundamentally transforming Nigeria’s downstream oil sector by significantly reducing the country’s reliance on imported refined petroleum products and strengthening foreign exchange earnings, according to the Economist Intelligence Unit (EIU).
In its latest assessment of Nigeria’s fuel market and regulatory environment, the EIU said the operational ramp-up of the 650,000 barrels-per-day refinery has reshaped a sector previously characterised by heavy dependence on imported fuel despite Nigeria being Africa’s largest crude oil producer.
The report stated that refinery supplied nearly 80 per cent of Nigeria’s domestic petrol demand in April and has produced sufficient volumes to meet local consumption needs as it approaches full operational capacity.
Describing Nigeria’s downstream petroleum sector before the refinery as “long dysfunctional,” the EIU noted that the country had relied almost entirely on costly fuel imports while producing nearly 1.5 million barrels of crude oil daily.
According to the report, the emergence of the refinery has improved domestic fuel availability, reduced import dependence, and strengthened Nigeria’s balance of payments position through lower import demand and increasing exports of refined petroleum products.
“The gradual ramp up of the 650,000 barrel/day Dangote refinery since May 2023 has transformed Nigeria’s long dysfunctional downstream sector.
“The country’s main refineries, all state-owned, had been inoperative for years and Nigeria was almost entirely reliant on costly imported fuel”, the report stated.
The EIU, the research and analysis division of The Economist Group, added that the refinery’s attainment of full operational capacity and planned future expansion would further support Nigeria’s economic growth and foreign exchange earnings in the coming years.
It projected that increased exports from the refinery, alongside plans to double production capacity before the end of the decade, would boost Nigeria’s real Gross Domestic Product (GDP) growth and forex inflows from 2026 onward.
Industry analysts said the refinery is positioning Nigeria as a major refining and export hub in Africa, potentially reshaping regional energy trade flows and reducing the continent’s dependence on imported fuel.
The EIU also noted that the refinery’s growth has coincided with major reforms in Nigeria’s downstream petroleum sector, including the removal of fuel subsidies and the introduction of market-driven pricing mechanisms.
However, the report observed that the shift from a state-dominated import structure to large-scale domestic refining has generated resistance from interests linked to the old import regime.
The latest controversy followed the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to relax restrictions on petrol imports despite the refinery’s increasing production capacity.
Dangote Industries Limited subsequently initiated legal action, arguing that continued import approvals undermine investments in local refining and contradict the objectives of the Petroleum Industry Act aimed at promoting domestic refining capacity.
Analysts further noted that the availability of large-scale domestic refining capacity has improved Nigeria’s energy security while reducing exposure to external supply shocks and foreign exchange volatility.
The Centre for the Promotion of Private Enterprise also warned against unrestrained fuel importation, saying such a policy could weaken Nigeria’s industrialisation drive and discourage investment in domestic refining.
Chief Executive Officer of the CPPE, Muda Yusuf, said continued dependence on imported fuel had historically exerted pressure on foreign reserves, contributed to exchange rate instability, and created fiscal leakages.
By: Nkpemenyie Mcdominic
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The Federal Government has approved a whooping $1bn credit facility to support Nigerian exporters and small scale businesses to take advantage of the African Continental Free Trade Area (AfCFTA) in order to boost production, competitiveness and intra-African trade.
The $1bn AfCFTA Adjustment Fund Credit Facility is also expected to address some of the financing gap being faced by Nigerian exporters and enhance the competitiveness of African businesses within the continental market.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, disclosed this during the second quarter 2026 meeting of the AfCFTA Central Coordination Committee held in Abuja.
According to a statement issued by the ministry’s Head of Press and Public Relations, Obilor-Duru Okechi, Oduwole said the financing facility represented a major opportunity for Nigerian businesses seeking to expand operations, modernise production processes and increase exports to African markets.
The statement partly read, “?The Federal Government has reaffirmed its commitment to accelerating Nigeria’s export-led growth agenda under the African Continental Free Trade Area, unveiling opportunities for businesses to access a US$1 billion AfCFTA Adjustment Fund Credit Facility aimed at boosting production, competitiveness, and intra-African trade.”
She noted that despite the progress Nigeria had made in implementing the continental trade agreement, many local businesses continued to face obstacles that limited their ability to take advantage of the single African market.
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“Many businesses still face challenges relating to export documentation, certification, standards compliance and market access,” the minister said.
She explained that the Federal Government was addressing these bottlenecks through enhanced trade facilitation measures, simplified AfCFTA guidance tools, stakeholder engagement programmes and stronger collaboration with institutions such as the Nigeria Customs Service and the Nigerian Export Promotion Council.
Oduwole stressed the need to strengthen Nigeria’s legal and regulatory framework by domesticating key AfCFTA protocols, particularly the Digital Trade Protocol, to position the country as a major player in Africa’s growing digital economy.
The minister also highlighted some of the gains recorded in Nigeria’s AfCFTA implementation efforts.
According to her, the expansion of Nigeria’s Air Cargo Corridor Initiative to Rwanda, increased collaboration with development partners and private sector players, as well as sustained engagement with state governments, were helping to deepen awareness and participation in the continental market.
In her welcome address and first-quarter update, the National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office, Mrs Patience Okala, provided details of the financing initiative.
Okala said the $1bn AfCFTA Adjustment Fund Credit Facility was targeted at large African businesses with a minimum financing capacity of $10m.
She revealed that the National AfCFTA Coordination Office was working closely with fund managers to facilitate access for eligible Nigerian companies and had begun assembling a pilot group of businesses to ensure that Nigeria maximised the opportunities provided by the facility.
Nkpemenyie Mcdominic, Lagos
The National Inland Waterways Authority (NIWA) has advised Nigerians against boarding boats that require constant bailing of water in the interest of their safety.
NIWA Area Manager for Cross River and Ebonyi, Mr Stanley Onuoha gave this warning in an interview with Newsmen in Calabar.
Onuoha who spoke on waterway
safety, said that passengers should take responsibility for their safety by inspecting boats before embarking on any journey.
According to him, repeated scooping of water from a boat is a clear indication that the vessel may be leaking.
“If you are entering a boat and see people using a bailer to remove water, it is the first signal that the boat is leaking,” he said.
He urged passengers to check the integrity of boats, including seating arrangements and other visible safety features.
The Manager restated the importance of using safety jackets, saying that damaged jackets may fail during emergencies.
He further said that passengers should ensure that safety jackets were appropriate for their body sizes in order to guarantee effective flotation.
Onuoha reiterated the need for passengers to fill manifests before departure to aid accountability during emergencies.
The NIWA official further advised travellers to monitor weather conditions and avoid boarding boats when the weather is unfavourable.
According to him, poor weather conditions can trigger strong tidal waves capable of affecting small boats commonly used on inland waterways.
He said that waterway journeys should be embarked upon between 6.00a.m and 6.00p.m for clearer visibility.
Onuoha said the Authority had continued to sensitise riverine communities to the need for safety precautions during waterway journeys.
He stated that sustained awareness campaigns and enforcement measures had contributed to safety waterway safety in Cross River.
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