The Dangote Petroleum Refinery accounted for 13% of Nigeria’s crude oil exports as domestic supply in 2024, according to a new Reuters report.
This marks a significant increase in Nigeria’s domestic share of oil exports compared to 2023, although it slightly reduced the country’s exports to Europe.
Interestingly, despite being a major exporter of crude oil, Nigeria imported 47,000 barrels per day of US crude in 2024—a situation experts consider unusual for an oil-exporting nation.
This development comes amid the Nigerian National Petroleum Company Limited grappling with crude-for-loan agreements that could keep the company servicing debts tied to oil production until 2029. With domestic refineries increasing their demand for crude, NNPCL’s obligations have placed additional strain on Nigeria’s oil production capacity.
The report also highlighted that the Dangote Refinery and other emerging refineries in the global south are reshaping the global flow of crude amidst sanctions on Russian oil.
Specifically, the 650,000 barrels-per-day Dangote Refinery has contributed to Nigeria’s increased crude imports from the United States.
In November 2024, The PUNCH reported that the Dangote Refinery received its first shipment of US West Texas Intermediate crude.
Multiple shipments from the US followed, boosting Nigeria’s crude imports from America, as the Nigerian National Petroleum Company struggled to supply crude to the refinery.
Globally, crude oil export volumes experienced a 2% decline in 2024—the first such decrease since the COVID-19 pandemic.
This drop has been linked to weak demand growth, sanctions, and a reshuffling of trade routes caused by new pipelines, refineries, and geopolitical conflicts.
The wars in Ukraine and the Middle East have significantly disrupted global crude trade.
Following Russia’s invasion of Ukraine, European refiners cut back on Russian oil purchases, increasing imports from the United States and the Middle East.
However, rising shipping costs due to Red Sea vessel attacks amidst Israel’s war with Gaza pushed refiners to turn to suppliers like the US and Guyana.
Additionally, Iraq’s oil exports fell by 82,000 bpd, while the United Arab Emirates recorded a decrease of 35,000 bpd. Europe compensated by increasing oil imports from Guyana by 162,000 bpd and from the US by 60,000 bpd.
While Europe and South America have reduced their reliance on Russian oil, countries like India and China have stepped up their purchases from Russia.
Other changes to global oil trade patterns include Canada’s expansion of its Trans Mountain pipeline, declining oil production in Mexico, and a halt in Libyan oil exports.
