Data on Nigeria’s fuel obtained from Argus West Africa Oil shows that the country’s imports from Russia surged by 84% in a year to 3.8 million liters (24,000 barrels) in 2023 from 558,300 liters (3,700 barrels) in 2022.
According to The Punch, after the European Union, the United Kingdom, and the United States imposed oil embargoes on Russia due to the invasion of Ukraine, Russia has been looking for additional markets.
According to a separate analysis by S&P Global, while supplies to European nations like France and Belgium have plummeted recently, shipments to African nations, particularly those in the north, have risen, especially since the EU embargo on goods imports came into force.
While the EU, the US, and other countries have publicly denounced Russia’s invasion of Ukraine, African nations have declined to denounce Vladimir Putin’s all-out invasion of the country.
The Organisation of Petroleum Exporting Countries, of which Nigeria is a significant member, has maintained oil trading relations and alliances with Russia, a non-OPEC member that has been a significant supporter of the Declaration of Cooperation oil cutbacks since 2014/2015.
According to Argus, while Nigeria imported over 265,000 b/d of petrol from 2016 to July 2023, with about 228,000 b/d coming from Europe, imports from Russia have increased to 24,000 b/d in 2023, up from 3,700 b/d the previous year.
In barely over a year, S&P Global reported that Russia’s exports of refined goods to Africa have increased 14-fold.
“By March 2023, imports from African countries such as Nigeria, Tunisia, and Libya had jumped sharply to 420,000 b/d,” it claimed.
According to experts cited by S&P Global, a new “scramble for Africa” has intensified since the invasion started at the beginning of last year, with erstwhile colonial powers Britain and France competing for influence in Nigeria alongside Russia, China, the US, Turkey, and the Gulf states.
“In exchange for lucrative mining contracts, Russian mercenaries with the Wagner Group have provided protection for African leaders, and Russian energy corporations are considering investing on the continent.
Before the sanctions, “Russia was a key product supplier to the European market, especially of diesel, fuel oil, and naphtha,” said the senior analyst of near-term oil markets at S&P Global.
“By March 2023, imports from African countries such as Nigeria, Tunisia, and Libya had jumped sharply to 420,000 b/d,” it claimed.
According to experts cited by S&P Global, a new “scramble for Africa” has intensified since the invasion started at the beginning of last year, with erstwhile colonial powers Britain and France competing for influence in Nigeria alongside Russia, China, the US, Turkey, and the Gulf states.
“In exchange for lucrative mining contracts, Russian mercenaries with the Wagner Group have provided protection for African leaders, and Russian energy corporations are considering investing on the continent.
Before the sanctions, “Russia was a key product supplier to the European market, especially of diesel, fuel oil, and naphtha,” said the senior analyst of near-term oil markets at S&P Global, Rebeka Foley.
However, due to the sanctions, more Russian diesel has been travelling to Latin America, Turkey, Africa, and the Middle East.
According to statistics from S&P Global Commodities at Sea, Tunisia bought just 2,700 b/d of Russian goods in the first quarter of 2022, but that number increased to 66,300 b/d in the same period this year. In contrast, Nigeria saw imports increase by almost five times year over year to 57,400 b/d in the same period.
“Nigeria wasn’t among the nations that imposed sanctions on Russia. Nigeria does not, as a matter of policy, participate in any alliances. Therefore, it is appropriate for Nigeria to support Russia. Additionally, Russian gasoline is being discounted. Consequently, Nigeria is using that, just as China and India are now doing.”
He stated that economic and security interests, not social interests, are the driving forces behind diplomatic foreign policies. Therefore, “Nigeria is pampering Russia because it advances both its economic and security interests,” according to the chief executive officer of Cowry Asset Management Ltd., Johnson Chukwu.
