The Dangote Petroleum Refinery has announced its first export of premium motor spirit (PMS), commonly referred to as petrol, to Cameroon. This landmark achievement, accomplished in collaboration with Neptune Oil, a Cameroonian energy firm, underscores a strategic pivot by the refinery as it seeks to expand its market reach beyond Nigeria.
In a statement released on Wednesday, Dangote Refinery highlighted the export as a milestone in regional energy integration, aimed at meeting Africa’s rising energy needs and strengthening economic ties between Nigeria and its neighbors.
“This milestone, resulting from a strategic collaboration between the two companies, underscores their commitment to strengthening economic ties between Nigeria and Cameroon while meeting the region’s growing energy demands,” the statement read.
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Aliko Dangote, President and CEO of Dangote Group, emphasized the significance of this export in advancing Africa’s energy independence.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” Dangote said.
Antoine Ndzengue, director and owner of Neptune Oil, celebrated the collaboration as a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development,” Ndzengue said.
He added that bypassing international intermediaries in the transaction underscores both companies’ commitment to ensuring efficiency and independence in energy trading.
Low Domestic Patronage
Despite its monumental capacity to revolutionize Nigeria’s oil and gas sector, the Dangote Refinery has reportedly faced challenges in securing adequate patronage from the Nigerian oil market. This subdued local demand, attributed to factors such as the deregulated fuel market and a competitive industry dominated by imports, has pushed the refinery to explore international opportunities.
Last month, the refinery commenced exporting petrol to West Africa.
Industry analysts suggest that Nigerian oil marketers have been slow to adopt products from the refinery due to concerns about pricing and distribution logistics, leaving the facility underutilized despite its potential to meet the country’s energy demands.
Nigeria’s trade with Malta reached an all-time high in the third quarter of 2024, with imports valued at N766.81 billion, according to the latest data from the National Bureau of Statistics (NBS). This suggests an increase in the importation of petroleum products.
In October, Dangote appealed to Nigerian marketers to lift oil from his refinery, adding that the plant has more than enough.
“I assured Mr. President, we will be able to supply the market a minimum of 30 million liters per day, and we’ll be ramping up as we go on. So, we’re ready. We’re more than ready.
“What I’m saying is that the retailers should please come forward and load our products.
“I expect either NNPCL or the marketers to stop importing; they should come and buy our products because we have what they need. And you know, as they move, I will be pumping.
“I don’t know whether you understand what it takes to have 500 million liters inside our tank. It’s costing me money every day.
“And you are talking about 500 million, you know, I mean, we don’t print money. But the issue is that if they come and collect, then you will not see any queues in the filling stations,’ Dangote,” said.
Against this backdrop, the refinery’s export to Cameroon marks another deliberate move to tap into markets outside Nigerian shores, providing an alternative revenue stream while bolstering its operations.
The partnership with Neptune Oil is more than a one-off transaction. Both companies have expressed a shared vision of creating a reliable fuel supply chain to stabilize prices and foster economic growth across West and Central Africa.
The export demonstrates the refinery’s ability to meet international standards, casting a spotlight on the challenges it faces at home.
This reliance on imported petroleum products has been a sore point for Nigeria’s energy sector, with stakeholders calling for more incentives to promote the consumption of locally refined products.
With the export to Cameroon, the refinery reinforces its role as a key player in reducing Africa’s dependency on foreign-refined petroleum products.
However, energy analysts have noted that although the refinery continues to expand its footprint, the success of its export strategy will likely hinge on its ability to overcome domestic challenges, gain the trust of Nigerian oil marketers, and establish itself as a competitive force both within and beyond Nigeria’s borders.
It is believed that this milestone, achieved despite domestic setbacks, is a promising step toward realizing a self-reliant and integrated African energy market.