Home Latest Insights | News Despite Launch of Production in Dangote Refinery, Nigeria’s Imports from Malta Hit Record High in Q3 2024

Despite Launch of Production in Dangote Refinery, Nigeria’s Imports from Malta Hit Record High in Q3 2024

Despite Launch of Production in Dangote Refinery, Nigeria’s Imports from Malta Hit Record High in Q3 2024

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).

The sharp rise is particularly striking as there were no recorded imports from Malta in the first half of the year. This surge has reignited debates about Nigeria’s dependency on imported fuel and allegations of industrial sabotage, even as the Dangote Refinery begins production.

The NBS report revealed that Malta was Nigeria’s fifth-largest import trading partner in Q3 2024, accounting for 5.23% of the country’s total imports valued at N14.67 trillion for the quarter. This figure places Malta behind China, India, Belgium, and the United States in Nigeria’s import rankings.

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The record-breaking imports from Malta came when Nigeria was expected to reduce its reliance on foreign fuel imports. With the Dangote Refinery commencing operations, many had anticipated a shift toward domestic refining to meet the country’s petroleum needs. Instead, the sharp rise in imports suggests Nigeria remains significantly dependent on external sources for refined petroleum products.

Economists and industry observers argue that the development highlights structural challenges in Nigeria’s oil and gas sector. The continued importation of fuel underscores inefficiencies and potential disruptions that may be undermining domestic production capacity.

Aliko Dangote, chairman of Dangote Industries Limited, has not been silent about his concerns regarding the state of Nigeria’s oil industry. He has accused actors within the industry, including regulators, of deliberately sabotaging his refinery’s operations. According to Dangote, certain individuals within the Nigerian National Petroleum Company Limited (NNPCL), oil traders, and terminal operators have vested interests in maintaining Nigeria’s dependency on imported fuel.

Dangote specifically pointed to a blending facility in Malta, alleging that it was established by NNPCL personnel in collaboration with international oil traders. The facility, which lacks refining capabilities, reportedly blends oxygenates with motor gasoline and other components to produce finished fuel.

Dangote stated that this setup is designed to bypass domestic refining efforts and sustain Nigeria’s reliance on imported fuel, thereby undercutting the potential impact of his refinery.

However, Mele Kyari, Group Chief Executive Officer of NNPCL, has categorically denied these allegations. Kyari stated that NNPCL has no ties to the blending plant in Malta or similar facilities worldwide. He also dismissed claims that the company’s employees are complicit in any sabotage efforts, describing the allegations as baseless.

Kyari further emphasized that NNPCL remains committed to supporting Nigeria’s energy transition and enhancing local refining capacity. However, given the rising imports from Malta and the lack of transparency in the country’s oil trade, many believe there are deeper systemic issues that require urgent attention.

The trade between Nigeria and Malta began only in the second quarter of 2023, with imports valued at N181.55 billion. By Q3 2023, the figure had surged to N561.37 billion, representing a 209.2% increase from the previous quarter. However, the upward trend was briefly interrupted in Q4 2023, when imports fell to N291.98 billion.

In 2024, imports from Malta remained nonexistent in the first half of the year, making the Q3 surge to N766.81 billion even more conspicuous. This figure not only surpasses previous quarterly records but also accounts for 74.1% of the total imports from Malta recorded throughout 2023.

The continued high volume of fuel imports, particularly from Malta, has raised questions about Nigeria’s ability to fully harness the Dangote Refinery’s potential. Dangote has called for regulatory reforms and stricter oversight to address what he describes as systemic sabotage. He also urged the government to prioritize domestic refining as a strategic imperative for economic growth and energy security.

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