Nigeria’s imports from Malta reached an all-time high of ₦766.81 billion in Q3 2024, placing the Southern European nation as the country’s fifth-largest trading partner during the period. This dramatic surge has drawn significant attention, particularly in light of allegations from Aliko Dangote, founder of the Dangote Petroleum Refinery, suggesting that Malta-based blending facilities might be undermining Nigeria’s oil industry.
The National Bureau of Statistics (NBS) reported that Malta accounted for 5.23% of Nigeria’s total imports, valued at ₦14.67 trillion in Q3 2024. This is a sharp increase compared to prior quarters, where Malta’s import contribution was negligible or non-existent. This rise follows a broader trend observed in 2023 when Nigeria’s total imports from Malta skyrocketed from zero in 2022 to over ₦1.03 trillion, a 342% growth in petroleum-related imports compared to previous years.
Implications of Dangote’s Claims
The controversy began when Dangote alleged that certain officials within the Nigerian National Petroleum Company Limited (NNPCL) were linked to a blending facility in Malta. He claimed that this plant, involved in producing refined petroleum products such as gasoline, was detrimental to Nigeria’s refining and production aspirations. NNPCL’s CEO, Mele Kyari, denied these allegations, stating that the company had no affiliations with such a facility.
However, trade data supports the assertion that Malta is a growing supplier of petroleum products to Nigeria. Between 2013 and 2023, imports of petroleum oils from Malta jumped from $47.5 million to $2.8 billion. This shift coincides with Nigeria’s struggle to refine domestically, leading to increased reliance on foreign refineries.
Economic Impact
Experts believe the surge in imports is partly tied to the naira’s devaluation, which has inflated the local currency cost of international trade. Additionally, the absence of operational domestic refineries for much of 2023 pushed Nigeria to source refined products from alternative markets like Malta.
Critics argue that the lack of transparency in the procurement of these imports raises red flags. Some industry stakeholders are calling for a full investigation to determine if the spike aligns with market forces or reflects deeper structural inefficiencies within Nigeria’s energy sector.
Way Forward
The opening of the Dangote Refinery, alongside other modular facilities nearing completion, is expected to reduce Nigeria’s dependency on foreign refined products. Nonetheless, until domestic refining reaches full capacity, the country may continue relying on nations like Malta for its energy needs.
This issue underscores the importance of addressing Nigeria’s refining gaps to strengthen energy independence and reduce vulnerabilities in the downstream oil sector.