Dangote refinery‘s operations will significantly affect the importation of refined petroleum products from Belgium into Nigeria and the short-term overall trade volume between both countries, the Belgian Ambassador to Nigeria, Pieter Leenknegt, has said.
Before the operations of Dangote refinery, Nigeria, a major oil producer, imported virtually all of its petroleum products, with a significant amount of it coming from Belgium.
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However, the refinery, which began operations last year, says it can produce enough petrol for local consumption.
In an exclusive interview with PREMIUM TIMES, Mr Leenknegt said the growth in Nigeria’s refining capacity is expected to reduce importation of refined petroleum from Belgium significantly.
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He described this as “the Dangote Refinery effect,” while stating that a major dip in Belgium’s refined oil trade with Nigeria, where the country has long been a key supplier, is much anticipated.
He said he expects the operations of the Dangote refinery to begin reflecting in the trade data between Nigeria and Belgium by the end of 2025.
“Clearly, this (Dangote refinery operations) is not going to be without any consequences for our bilateral trade in the short run,” he said.
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While trade volumes between Nigeria and Belgium in 2024 show a slight dip, the ambassador attributed that trend not to the Dangote Refinery but to Nigerians’ shrinking purchasing power.
“You saw a dip generally in exports from Belgium to Nigeria, and even from some imports from Nigeria to Belgium,” he noted. “But that’s not the Dangote refinery effect. It’s the purchasing power dip effect in Nigeria, which makes Nigerians have fewer dollars and euros to spend on purchasing goods abroad.”
Acknowledging Belgium’s dominance in refined petroleum exports to Nigeria, the diplomat said, “We are the top importing European country into Nigeria and, most of it being refined oil.”
About 40 per cent of Nigeria’s imports from Europe passes through Belgium, most of it being refined petroleum products. Belgium is also a key supplier of chemicals, medical equipment, and industrial goods to Nigeria.
Dangote Refinery Petroleum production
Dangote Petroleum Refinery, the world’s largest single-train refinery, began production of diesel and aviation fuel in January 2024, but began processing petrol in September 2024.
The refinery’s operations have led to a significant reduction in petroleum product importation into Nigeria and have led to considerable savings in foreign exchange. The Nigeria Bureau of Statistics (NBS) reports that Nigeria spent $1.2 billion on petrol imports in the first quarter of 2025, down from $2.6 billion in the same period last year.
In June, the refinery announced that it had commenced distribution of petrol and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country.
Within the last three months, the Dangote refinery has reduced oil prices twice to reflect the global market price. First in June, from N880 per litre to N840 per litre and then down to N8320 per litre in July.
Before the establishment of the Dangote Refinery, Nigeria heavily relied on imports for refined oil, even though it is the leading crude oil producer in Africa.
Mr Leenknegt described Nigeria’s heavy dependence on refined petroleum as illogical.
“It’s also not very logical for petroleum to be first shipped from Nigeria to Europe, then to be shipped back, refined in Europe to Nigeria. There’s no sound logic for that.
“From the moment Nigeria is able to produce as good a product in terms of refined petroleum as Belgium does, then of course, who would Belgium be to oppose that?” He stated.
“So, it’s also a matter of common sense that our trade in the future will be more about other products, and an interesting development in that regard is also if you look in the other direction,” he added.
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Mr Leenknegt, however, noted that Belgium is shifting its export focus to Nigeria from petroleum to agriculture, health and other sectors.
He said this shift is also part of the effort to diversify Belgium’s trade relations with Nigeria.
“We’ve been hoping for a diversification of our trade for the longest time; for a move away from petroleum products, because it’s just not very healthy for any economy to depend too much on that,” he added.
In the interview, the diplomat also spoke about other issues such as cooperation in drug manufacturing, agriculture and other trade matters.
PREMIUM TIMES will publish the full interview with the Belgian ambassador on Saturday.
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