It is anticipated that the Dangote diesel will put an end to the 2.5 billion liters of diesel that are currently imported from European refiners each year.
Because of the inconsistent power supply from the national grid, European refiners have had a profitable market in Nigeria for many years.
It is anticipated that the Dangote refinery‘s supply of diesel will put more strain on European refineries, which are already in danger of closing due to increased competition.
After spending $20 billion on construction, the Dangote refinery began operations in January and has the capacity to refine up to 650,000 barrels per day (bpd).
Nigeria may receive a supply of 244,000 barrels of diesel and 327,000 barrels of gasoline per day once Dangote reaches a steady state capacity.
This could make it a dominant supplier in the West African market by reducing the region’s reliance on imports of gasoline by as much as 290,000 barrels per day between 2023 and 2026.
West Africa received a larger share than any other region from Europe’s average gasoline exports of 1.33 million barrels per day in 2023, according to data sourced from the global trade intelligence platform Klper.
A select group of refineries that lack the equipment to upgrade their gasoline to meet US and European specifications will find it difficult to lose the West African market.
The richest man in Africa, Aliko Dangote, provided funding for the Dangote refinery, which had a capacity of 53 million liters of gasoline per day, or 300,000 barrels per day.
According to experts, the decline in imports from West Africa will occur at the same time as new environmental regulations in Northwest Europe compel plants to either close down, find new markets for lower-quality gasoline, or reconfigure.
The economy of the West African country could be heading towards a better future.
