Nigeria Resumes High-Volume Fuel Imports Amid Dangote Refinery Maintenance

Nigeria has returned to importing large volumes of petrol, with May imports hitting a four-month peak. This shift underscores the nation's continued reliance on foreign fuel supplies. Market data reveals that petrol deliveries into Nigeria averaged 57,000 barrels per day in May, while exports were 23,000 barrels per day. This reverses the net export position seen in March and April, when domestic supply outpaced imports.

The primary driver for this increase in imports was scheduled maintenance at the 700,000 barrels-per-day Dangote Refinery. A critical unit for gasoline production, the Residual Fluid Catalytic Cracker (RFCC), underwent maintenance during May. This affected the refinery's output, creating a demand for additional fuel imports.

Consequently, marketers and refiners sourced more petrol from Europe, which supplied all of Nigeria's import needs for May. Norway led as the largest supplier, followed by Italy and France. Both the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery were involved in these imports. NNPC imported about 11,000 barrels per day, while Dangote accounted for 27,000 barrels per day. This situation is unusual, with the refinery acting as both the country's largest producer and a major importer.

The rise in imports followed approvals for substantial import allocations for the second quarter by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Several independent marketers also received permits to import petroleum products to bolster domestic supply. Despite the temporary disruption from maintenance, the refinery continued operations, receiving significant volumes of blending materials and feedstock.