The Dangote Petroleum Refinery retained 13 per cent of Nigeria’s crude oil exports for domestic supply in 2024, according to a new Reuters report.
The report indicates that this increased Nigeria’s domestic share of oil exports from 10% in 2023 and slightly reduced the country’s exports to Europe.
Despite being a major crude exporter, Nigeria imported 47,000 barrels per day of U.S. oil in 2024, an unusual trend for oil-exporting nations.
This comes as the Nigerian National Petroleum Company Limited may continue servicing crude-for-loan obligations until 2029, amid rising demand from domestic refineries.
NNPCL’s debt burden stems from multiple crude-for-loan agreements that have committed significant volumes of Nigeria’s oil production to meeting various financial obligations.
The report further revealed that the Dangote Refinery, along with other new refineries in the Global South, has altered global crude flows amidst sanctions on Russian oil.
Notably, the 650,000 bpd capacity refinery imported U.S. oil, contributing to Nigeria’s increased crude imports from the United States, playing a significant role in this shift.
The Dangote Refinery reportedly received its first shipment of U.S. WTI crude in November 2024.
The report stated that global crude export volume declined by 2% in 2024, marking the first drop since the COVID-19 pandemic.
This was attributed to weak demand growth, reshuffled trade routes caused by conflicts and sanctions, and the impact of new pipelines and refineries.