Nigeria’s Energy Transformation: Market Competition Drives Policy Shift
5th November 2025 Nigeria is signalling its willingness to sell state-owned refineries as the government seeks to stimulate competition in the downstream sector—marking a notable shift in the country’s broader energy strategy. The development follows President Tinubu’s approval of a 15% import duty on refined petroleum products, aimed at safeguarding recent multi-billion-dollar investments in domestic refining. The Dangote Refinery now reports production of more than 45 million litres of petrol and 25 million litres of diesel per day, surpassing Nigeria’s internal consumption requirements. A Strategic CrossroadsThe Nigerian National Petroleum Company’s four state-owned refineries—despite a combined capacity of 445,000 barrels per day—have processed virtually no crude for decades, even after billions were allocated for repairs. Key stakeholders, including the Manufacturers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association, are calling for full privatisation to enhance efficiency and reduce recurrent government expenditure. Critics argue that the state-owned facilities remain “a pure drain on the Nigerian economy”, stressing that private management would curb corruption, ensure accountability, and foster healthy competition with the Dangote operation. The Monopoly DebateFuel traders caution that, if mismanaged, the new tariff regime could stifle fuel imports and create a de facto refining monopoly—potentially exposing Nigeria to fresh rounds of fuel scarcity. Policymakers therefore face the delicate task of protecting domestic refiners while preserving competitive dynamics in the market. For Gapuma Group, which operates extensively across West Africa’s energy landscape, this policy shift highlights the scale and speed of transformation within Nigeria’s downstream sector—presenting both opportunities and complexities for regional fuel trading and logistics. The outcome of Nigeria’s privatisation debate will shape energy flows across West Africa for generations.
Nigeria Expands Clean Energy Logistics with New LPG Carrier
19th August 2025 Nigeria’s President Bola Ahmed Tinubu has commissioned the new 40,000 CBM Liquefied Petroleum Gas (LPG) carrier built for West Africa Gas Limited (WAGL)—a joint venture between NNPC Ltd. and Sahara Group. The commissioning of MT Iyaloja (Lagos) marks more than fleet expansion; it underscores Nigeria’s growing role in regional energy flows, particularly as LPG emerges as a cleaner transition fuel across Africa. Speaking on behalf of the President, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, praised WAGL and its partners for their strategic foresight in bridging critical energy infrastructure gaps. From a commodities and logistics perspective, the carrier strengthens supply chains from refinery output to end-user delivery, enhancing affordability, reliability, and regional distribution. With WAGL’s fleet capacity now exceeding 162,000 CBM, plans to add both a Small Gas Carrier and a Very Large Gas Carrier (VLGC) will further integrate Nigeria into global commodity flows. The ship’s name, Iyaloja (“Leader of the Market” in Yoruba), honours Alhaja Abibatu Mogaji MFR, the late mother of President Tinubu, with the commissioning ceremony featuring a ribbon cutting by the current Iyaloja-General of Nigeria, Alhaja Folasade Mujidat Tinubu-Ojo. In commodities terms, this story is about more than ships—it highlights energy logistics as the backbone of refinery output, cross-border trade, and Africa’s integration into global clean energy markets.