London/Brussels, July 26 – Nigeria’s mega-refinery, the brainchild of billionaire Aliko Dangote, is facing fresh scrutiny after allegations surfaced that it is offloading crude oil cargoes. Four industry sources familiar with the matter claimed on Friday that the Dangote refinery has been reselling both Nigerian and US crude.
Three of the sources linked the unexpected move to potential technical glitches at the refinery. However, a senior executive at Dangote Industries dismissed these claims, insisting that the refinery’s crucial crude distillation unit is operating normally.
The refinery, which commenced operations in January, is poised to become Africa and Europe’s largest when fully operational. Its potential to reshape the continent’s fuel landscape by transforming Nigeria from a net importer to an exporter has been widely anticipated.
Industry insiders revealed that the refinery has been offering Nigerian Escravos and Forcados crude, as well as US WTI Midland for resale. This comes despite the facility importing substantial volumes of crude in recent months. While such practices are uncommon in the refining sector, they are not unprecedented, according to trade sources.
News of the resales sent shockwaves through the oil market. Brent crude prices plummeted by as much as 2.5% to around $80 a barrel before recovering to above $81.
Dangote’s ambitious project, built at a staggering cost of $20 billion, aims to liberate Nigeria from its chronic reliance on fuel imports.
