Energy
S’Africa Overtakes Nigeria As Africa’s Top Fuel Importer – Report
Nigeria has relinquished its long-held position as Africa’s largest importer of refined petroleum products following the ramp-up of operations at the Dangote Petrochemical Refinery, a new report has stated.
South Africa has now overtaken Nigeria as the continent’s largest fuel importer, according to new data from energy consultancy CITAC, signalling a seismic shift in Africa’s downstream oil market.
The refinery, which began large-scale production in early 2024, is already disrupting established trade flows across sub-Saharan Africa and reshaping the continent’s energy dynamics.
With a refining capacity of 650,000 barrels per day, the largest single-train refinery in the world, its rising output is sharply reducing Nigeria’s dependence on petrol imports.
ALSO READ: Mid-term: Buhari Backs Tinubu, Cautions Against Nettlesome Politics
The latest figures released by an energy consultancy, CITAC, on Wednesday, showed that Nigeria imported 3.1 million metric tonnes of refined petroleum products in the first quarter of 2025.
In contrast, South Africa brought in 4.2 million tonnes over the same period, cementing its status as the continent’s biggest fuel importer.
“Nigerian imports are dropping as a result of the continued operation of Dangote,” said Elitsa Georgieva, Executive Director at CITAC.
“Since the beginning of this year, South African imports have been consistently the highest in sub-Saharan Africa. Crude throughput across sub-Saharan African refineries rose by 77.8 per cent year-on-year in 2024, jumping from an average of 382,500 barrels per day in 2023 to 680,100 barrels per day in 2024. This leap was almost entirely driven by the Dangote plant.”
The development marks a significant milestone for Nigeria, which has for decades paradoxically relied on imported fuel despite being Africa’s top crude oil producer.
The report further estimated that Nigeria’s total refined fuel imports for 2025 will fall to 6.4 million tonnes, less than half of South Africa’s projected 15.5 million tonnes.
“The Nigerian market has undergone major product flow changes since mid-2023. The long-awaited 650 kb/d Dangote refinery near Lagos began operations in January 2024, steadily ramping up throughput and streaming secondary units throughout the year. Output from the Dangote refinery has displaced the bulk of international clean products imports in West Africa,” the report explained.
The Dangote refinery has become a major source of petroleum product offtake and has ramped up to 550,000 barrels of refining capacity per day. While Nigeria’s imports are on the decline, South Africa’s dependence on foreign fuel is deepening.
Its growing reliance on imported fuels stems from a sharp decline in its refining capacity. Industrial accidents, ageing infrastructure, and chronic underinvestment have forced the shutdown of several facilities since 2020.
Transnet SOC Ltd, South Africa’s state-owned logistics company, reports that imports now meet over 60 per cent of national fuel demand. The situation worsened in 2022 when the country’s largest refinery, Sapref, a joint venture between Shell Plc and BP Plc, was idled.
Although the government acquired the plant in 2023 in a bid to restart operations, no relaunch date has been confirmed. “South Africa’s infrastructure is mature, but its refining shortfall is now attracting foreign traders who can bridge the gap,” said an industry executive involved in the Shell divestment talks.
Analysts say Nigeria’s reduced import dependency could support the naira, relieve pressure on foreign exchange reserves, and narrow trade deficits. The shift also has fiscal implications for the government, which has historically spent heavily on subsidising imported fuel.
Meanwhile, Swiss-based oil trader Mocoh has said it’s undergoing a strategic overhaul as the Dangote refinery reshapes fuel supply dynamics across West Africa, disrupting traditional trade routes and prompting a shift in business models.
For years, Mocoh built its core business around supplying premium motor spirit, popularly known as petrol, to Nigeria, Africa’s largest oil consumer, relying heavily on deals with the Nigerian National Petroleum Company Limited.
However, that changed dramatically with the phased start-up of the 650,000 barrels-per-day Dangote refinery, which began supplying large volumes of fuel to the domestic market in 2024.
“In early 2025, we saw a paradigm shift,” said Olivier Lassagne, Mocoh’s new CEO, in an interview with Platts. “We lost most of our petrol trade with NNPC, but that’s pushed us to grow beyond our traditional niche and reposition for the future.”
Moscow, which has operated in Nigeria for nearly three decades, has found new footing by partnering with Dangote to export surplus fuel to regional markets like Benin, Cameroon and Burkina Faso.
Yet, competition is fierce. Dangote has so far favoured trading giants like Vitol, BP and Trafigura for major offtake deals, while newer players such as Afreximbank-backed Atmin are vying to expand intra-African flows.
“Dangote values flexibility and market pricing. They aren’t tying themselves down with exclusive partners,” Lassagne said, adding that Mocoh is positioning itself as a nimble regional player.
Shell Nigeria Gas (SNG) shared its experiences in pioneering gas distribution nearly 30 years ago, and identified the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors as critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” recalled Managing Director Ralph Gbobo at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand” at the 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja late last week.
Represented by Head, Gas Distribution, Chukwuka Amos-Ejesi, Raph said: “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
He said SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial clusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilization deepens and confidence builds,” he pointed out.
ALSO READ: Africa’s Largest Bank Backs Dangote Refinery’s IPO
The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation. The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.
Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”
He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled the government’s strong commitment to gas as a driver of industrial development.”
Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries. In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.
Photo Caption – L–R: Chairman, Association of Local Distributors of Gas (ALDG), and Managing Director, Axxela Gas Distribution, Kehinde Alabi; and Head of Gas Distribution, Shell Nigeria Gas, Chukwuka Amos-Ejesi, receiving a commendation plaque on behalf of SNG Managing Director, Ralph Gbobo, in recognition of his professional and diligent service on the Governing Board of the Association, at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja
In what is expected to provide investors and industry stakeholders with a detailed overview of Nigeria’s energy assets and opportunities, her first comprehensive Gas and Power Infrastructure Map will be unveiled at the 25th edition of NOG Energy Week.
It was gathered that the publication, developed by the Gas for Africa programme in partnership with NNPC Limited, will be launched during the annual energy conference in Abuja and is being positioned as a major step towards improving transparency and investment decision-making in Nigeria’s gas and power sectors.
Industry stakeholders have long cited the lack of consolidated and reliable infrastructure data as a major challenge to attracting investment into the sector. The new map seeks to address that gap by providing a single source of information on Nigeria’s gas and power infrastructure, including pipelines, gas processing facilities, power generation assets, LNG terminals and key transmission networks.
ALSO READ: Dangote Refinery Hits 700,000bpd Output, Eyes Global Leadership
Alongside the infrastructure map, organisers will also release a comprehensive report on Nigeria’s gas sector, which they describe as the most extensive industry intelligence publication ever produced on the country’s gas value chain.
The report examines developments in the sector since 2020 and covers key areas such as the NNPC Gas Master Plan 2026, gas reserves and production trends, pipeline infrastructure, capacity challenges, compressed natural gas (CNG), piped natural gas (PNG), liquefied natural gas (LNG) markets, gas-to-power projects and gas-based industrialisation.
According to the organisers, the publication provides an end-to-end assessment of Nigeria’s gas industry and offers critical insights for investors, policymakers and industry operators.
The launch comes at a time when global energy markets are undergoing significant shifts, driven by geopolitical tensions and increasing demand for alternative and secure energy supplies.
Organisers noted that Nigeria is strengthening its position as a major energy player, supported by rising crude oil production, implementation of a new Gas Master Plan and expanding refining capacity.
They said the infrastructure map and accompanying report are expected to help convert investor interest into concrete projects by providing accurate data on existing assets, infrastructure gaps and future opportunities across the sector.
Attendees at NOG Energy Week will be the first to access both publications as government officials, energy executives, investors and industry leaders gather in Abuja for the five-day event.
The conference is also expected to feature investment discussions, joint venture announcements, memorandum of understanding signings and project partnerships aimed at advancing Nigeria’s energy development agenda.
With preparations gathering momentum ahead of the event, organisers said NOG Energy Week 2026 will provide a platform for stakeholders to examine the future of Nigeria’s energy sector and its role in Africa’s broader energy transition and industrial growth.
OPEC+ ministers decided Sunday to increase oil quotas by a total 188,000 barrels per day for July, in a move analysts said would be unlikely to have an impact on prices sent higher by the Mideast war.
Jorge Leon, analyst at Rystad Energy, said ahead of the expected increase that it “means very little while the Strait of Hormuz remains closed”.
He added: “The market is not short of quota announcements; it is short of physical barrels that can actually move. In that sense, the 188,000 barrels per day increase would be more of a policy signal than a real supply boost.”
The hiked production output was agreed Sunday in a video meeting of oil ministers from key OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, a statement from the organisation said.
ALSO READ: Oil Sector Attracts $460,000 in Three Months – NBS
The increase was similar to ones decided in previous months.
The OPEC+ statement said the latest agreed hike was “to support oil market stability” but that the seven countries also saw an opportunity “to accelerate their compensation” in a time of historically high oil prices.
It added that the ministers “reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments announced in November 2023”.
Leon, at Rystad Energy, said that OPEC+ was wary in case the Mideast war changes, and Iran’s stranglehold on the Strait of Hormuz eases.
“When the Strait of Hormuz reopens, the market could move very quickly from fear of shortage to fear of surplus,” he said.
“Returning OPEC+ supply, a stronger US shale response and weaker demand after a period of very high prices could leave the market with a very large oversupply problem,” he said.
AFP
Xenophobia Horror: 268 Nigerians Flee South Africa, Arrive Lagos Today
June 12 Showdown: Falana, Falz Lead Nationwide Protest Against Hardship, Insecurity
2027: ‘Even If Insecurity Worsens, Power Will Not Change Hands’ – Okpebholo Declares
Senate Queries SEDC Over N153m Abuja Office Rent, Demands Full Spending Breakdown
‘Enough of the Speeches’ – Sharia Council Demands Immediate Action on Insecurity
‘I Play Like Mahrez’ – Brighton’s Nigerian Wonderkid Yohanna Sends Message to Premier League Fans
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
vkbxnz
j24n5m
odxyh1
Just a smiling visitor here to share the love (:, btw outstanding pattern.
y5dhob
Perfectly written content, Really enjoyed looking at.
amei este site. Pra saber mais detalhes acesse o site e descubra mais. Todas as informações contidas são informações relevantes e exclusivos. Tudo que você precisa saber está ta lá.
I¦ll right away take hold of your rss feed as I can not to find your e-mail subscription link or newsletter service. Do you have any? Kindly let me understand in order that I could subscribe. Thanks.
Fantastic beat ! I wish to apprentice at the same time as you amend your web site, how could i subscribe for a weblog web site? The account aided me a appropriate deal. I were a little bit familiar of this your broadcast offered brilliant clear idea
wonderful points altogether, you just gained a brand new reader. What would you recommend about your post that you made some days ago? Any positive?
Hmm is anyone else encountering problems with the images on this blog loading? I’m trying to determine if its a problem on my end or if it’s the blog. Any feed-back would be greatly appreciated.
That is really fascinating, You’re an excessively skilled blogger. I have joined your rss feed and look forward to looking for extra of your magnificent post. Additionally, I have shared your web site in my social networks!
Hello there, I found your site by the use of Google while searching for a related topic, your website came up, it appears great. I’ve bookmarked it in my google bookmarks.
I’m so happy to read this. This is the kind of manual that needs to be given and not the accidental misinformation that is at the other blogs. Appreciate your sharing this best doc.
Lovely just what I was looking for.Thanks to the author for taking his clock time on this one.
Wohh precisely what I was looking for, thanks for posting.
I see something truly special in this website.
It is appropriate time to make some plans for the future and it’s time to be happy. I have read this post and if I could I wish to suggest you few interesting things or suggestions. Maybe you can write next articles referring to this article. I desire to read more things about it!
You really make it seem so easy with your presentation but I find this matter to be really something that I think I would never understand. It seems too complex and extremely broad for me. I am looking forward for your next post, I’ll try to get the hang of it!