{"id":355905,"date":"2026-05-29T03:28:59","date_gmt":"2026-05-29T02:28:59","guid":{"rendered":"https:\/\/www.thetidenewsonline.com\/?p=355905"},"modified":"2026-05-28T16:31:45","modified_gmt":"2026-05-28T15:31:45","slug":"dangote-refinery-ending-nigerias-dependence-on-imported-fuel-eiu","status":"publish","type":"post","link":"https:\/\/www.thetidenewsonline.com\/?p=355905","title":{"rendered":"Dangote Refinery Ending Nigeria\u2019s Dependence on Imported Fuel &#8211; EIU"},"content":{"rendered":"<div dir=\"auto\">\n<div dir=\"auto\">\n<div dir=\"auto\">Dangote Petroleum Refinery &amp; Petrochemicals is fundamentally transforming Nigeria\u2019s downstream oil sector by significantly reducing the country\u2019s reliance on imported refined petroleum products and strengthening foreign exchange earnings, according to the Economist Intelligence Unit (EIU).<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">In its latest assessment of Nigeria\u2019s 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\u2019s largest crude oil producer.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The report stated that refinery supplied nearly 80 per cent of Nigeria\u2019s domestic petrol demand in April and has produced sufficient volumes to meet local consumption needs as it approaches full operational capacity.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Describing Nigeria\u2019s downstream petroleum sector before the refinery as \u201clong dysfunctional,\u201d 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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">According to the report, the emergence of the refinery has improved domestic fuel availability, reduced import dependence, and strengthened Nigeria\u2019s balance of payments position through lower import demand and increasing exports of refined petroleum products.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe gradual ramp up of the 650,000 barrel\/day Dangote refinery since May 2023 has transformed Nigeria\u2019s long dysfunctional downstream sector.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe country\u2019s main refineries, all state-owned, had been inoperative for years and Nigeria was almost entirely reliant on costly imported fuel\u201d, the report stated.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The EIU, the research and analysis division of The Economist Group, added that the refinery\u2019s attainment of full operational capacity and planned future expansion would further support Nigeria\u2019s economic growth and foreign exchange earnings in the coming years.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">It projected that increased exports from the refinery, alongside plans to double production capacity before the end of the decade, would boost Nigeria\u2019s real Gross Domestic Product (GDP) growth and forex inflows from 2026 onward.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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\u2019s dependence on imported fuel.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The EIU also noted that the refinery\u2019s growth has coincided with major reforms in Nigeria\u2019s downstream petroleum sector, including the removal of fuel subsidies and the introduction of market-driven pricing mechanisms.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The latest controversy followed the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to relax restrictions on petrol imports despite the refinery\u2019s increasing production capacity.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Analysts further noted that the availability of large-scale domestic refining capacity has improved Nigeria\u2019s energy security while reducing exposure to external supply shocks and foreign exchange volatility.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The Centre for the Promotion of Private Enterprise also warned against unrestrained fuel importation, saying such a policy could weaken Nigeria\u2019s industrialisation drive and discourage investment in domestic refining.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">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.<\/div>\n<\/div>\n<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\n<div dir=\"auto\">\n<div dir=\"auto\">\n<p>Nkpemenyie Mcdominic<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dangote Petroleum Refinery &amp; Petrochemicals is fundamentally transforming Nigeria\u2019s downstream oil sector by significantly reducing the country\u2019s reliance on imported refined petroleum products and strengthening foreign exchange earnings, according to the Economist Intelligence Unit (EIU). In its latest assessment of Nigeria\u2019s fuel market and regulatory environment, the EIU said the operational ramp-up of the 650,000 [&hellip;]<\/p>\n","protected":false},"author":67315,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-355905","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/355905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/users\/67315"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=355905"}],"version-history":[{"count":1,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/355905\/revisions"}],"predecessor-version":[{"id":355910,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/355905\/revisions\/355910"}],"wp:attachment":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=355905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=355905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=355905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}