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Nigeria’s Petroleum Imports from Malta Surge under Tinubu Administration

July 28, 2024
in Business
Nigeria’s Petroleum Imports from Malta Surge under Tinubu Administration
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http://economicconfidential.com/Crude Oil Prices rise

Nigeria’s Petroleum Imports from Malta Surge under Tinubu Administration

A new report has indicated that Nigeria’s petroleum products import from Malta increased by 342 percent in 2023 to $2.08 billion. This surge coincides with President Bola Tinubu’s inauguration and follows allegations by the Dangote Group that Nigerian National Petroleum Company Limited (NNPC) officials own blending plants in Malta, importing substandard products into Nigeria.

The report from the renowned data analysis firm Statisense revealed a significant shift in Nigeria’s petroleum import dynamics over the past decade. The data shows a dramatic decline in the country’s reliance on petroleum products imported from Malta during the Buhari administration, but increased significantly the Year he handover to Tinubu.

Economic Confidential reports that the data published by Statisense was synchronized with that of Trade Map, a global database on International trade.

According to the data, Nigeria’s petroleum imports from Malta reached a high of $117.01 million in 2015, a period that spanned the administrations of former President Goodluck Jonathan and the early years of President Muhammadu Buhari’s tenure.

However, this figure plummeted to just $13.32 million in 2016, the first full year of Buhari’s presidency. The data further shows that from 2017 to 2022 of Buhari’s administration, Nigeria recorded no petroleum imports from Malta whatsoever, a stark contrast to the preceding years.

The trend appears to have taken a significant turn in 2023, with the data indicating a sharp rise in imports to $2.08 billion during the early days of President Bola Tinubu’s administration.

Economic Confidential reports that the resurgence of petroleum imports from Malta in 2023 under the Tinubu administration has raised questions about the sustainability.

Allegations of substandard fuel imports also sparked a dispute when Dangote claimed that some NNPC officials and oil traders own blending plants in Malta, from which they import inferior products into Nigeria.

However, NNPC’s Group Chief Executive Officer, Mele Kyari, has denied these allegations. He stated that he is unaware of any blending plant in Malta owned by NNPC employees or himself. Kyari emphasized that he only operates a local mini agricultural venture and has no other business interests.

This controversy follows a recent dispute between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The NMDPRA CEO, Farouk Ahmed, had claimed that diesel from Dangote Refinery is of lower quality compared to imported fuel. This accusation led to widespread outrage and calls for Ahmed’s suspension by the House of Representatives.

The developments come as Dangote Refinery prepares to commence fuel supply in the Nigerian domestic market from August 2024.

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