Nigeria’s growing local refining capacity is changing the petroleum trade in West Africa. This was revealed by Huub Stokman, chairman of the Major Energies Marketers Association of Nigeria (MEMAN).
Speaking during a webinar hosted by MEMAN and S&P Global Commodity Insights, Stokman said the discussion was timely. Nigeria, he noted, has moved fully into petrol price deregulation. With that shift, local refining is gradually altering the regional supply structure.
He explained that MEMAN will continue to promote transparency, benchmarking, and stakeholder coordination. These measures, he stressed, will help stabilize the downstream market as changes unfold.
Dangote Refinery Alters Regional Trade Flows
Gary Clark, associate editorial director for EMEA clean refined products at S&P Global, highlighted the Dangote refinery’s impact. According to him, more petrol now stays within West Africa, while jet fuel moves abroad.
Clark added that import reliance has reduced but has not ended completely. Refinery outages or maintenance could still bring imports back. Such risks, he warned, may cause short-term price volatility.
Ogechi Nkwoji, head of economic intelligence research and regulation at MEMAN, also pointed to the ex-Lomé hub. She described it as an offshore trading option that grew from onshore bottlenecks and low domestic refining output.
She explained that large cargoes are stored offshore in Togo before Nigerian marketers buy smaller parcels. The hub’s deep waters, quick transactions, and flexible cargo sizes make it key for price discovery and regional supply.
Refinery Outages Raise Market Risks
Matthew Tracey-Cook, senior price reporter at S&P Global, noted a petrol crack surge in August. Prices jumped from about $13 to more than $17 per barrel after a unit outage at the Dangote refinery.
He warned that disruptions like this could affect supply across the Atlantic basin. They could also push markets into backwardation. Tracey-Cook stressed that such movements show how Dangote now shapes petroleum trade patterns in the region.