BusinessDay’s investigation reveals that the Dangote oil refinery’s diesel supply is set to replace the importation of the product from European refiners, which amounts to about 2.5 billion litres annually. This shift is expected to end decades of reliance on imported diesel due to Nigeria’s unreliable national power grid, which has cost the country an estimated $17 billion yearly.
Analysts and traders anticipate that the Dangote refinery’s diesel supply will create competition for European refineries, potentially putting them at risk of closure. Farai Ronoledi, an oil trader, views this development as a significant change in the global refining industry, not just a domestic victory.
While there have been concerns about the sulphur content in the Dangote refinery’s diesel, a senior executive in the trading business believes that this shift will ultimately benefit Nigeria, as it reduces reliance on European imports.
Source: Business Day