In Nigeria: Good vs Evil – A Flashback to the Struggles Behind the Pump Price
Nigeria’s petrol import levels have spiked in recent weeks following a slowdown in production at the Dangote Petroleum Refinery due to scheduled maintenance. The development has forced fuel marketers to resume imports from European suppliers while also intensifying the use of Togo as a key transshipment point.
The Dangote Refinery, Africa’s largest and widely viewed as a potential game-changer for Nigeria’s domestic fuel sufficiency, has reduced output temporarily, creating a shortfall in local supply. In response, marketers have increasingly turned to European sources to bridge the gap and ensure consistent distribution across the country.
However, what’s gaining attention in industry circles is the growing role of Togo in Nigeria’s fuel logistics chain. According to market insiders, large fuel cargoes are now being offloaded offshore in the Lome area, where they are redistributed into smaller vessels for shipment into Nigeria. This offshore transshipment model is allowing traders to bypass logistical bottlenecks and fast-track fuel imports into the Nigerian market.
Despite Nigeria’s ongoing efforts to boost domestic refining capacity, reliance on petrol imports remains substantial. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that more than 50 percent of Nigeria’s daily petrol consumption is still covered by imported supplies.
Industry analysts point to the volatile pricing regime as a major challenge. Frequent adjustments in petrol prices by the Dangote Refinery — combined with unstable global crude oil prices — have left many marketers cautious. While some stakeholders remain optimistic about the long-term benefits of local refining, others are hedging by sourcing from international markets to stabilize their supply chains.
The recent surge in imports underscores the fragile balance Nigeria maintains between refining ambition and market realities. As the Dangote Refinery works to resume full operations, experts say regulatory clarity and infrastructure improvements will be essential to reducing dependency on foreign fuel and ensuring a more resilient energy sector.
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