Africa's wealthiest person, Aliko Dangote, has initiated talks with several international banks to secure substantial funding for crude oil imports.
Among the institutions participating in these discussions is the Africa Finance Corporation (AFC), a development lender focused on pan-African initiatives, as reported by the Financial Times.
The report highlights that Dangote Refinery requires additional crude oil to achieve its full capacity of 650,000 barrels per day.
The Knightsbridge Strategic Group (KSG), a consortium of experts from the United States and the United Kingdom specializing in geopolitical intelligence, anticipates that the refinery will reach its full capacity by 2025.
KSG notes that once this capacity is attained, there will likely be long-term decreases in local fuel prices and heightened market competition in Europe, as Nigeria emerges as a new fuel exporter.
Furthermore, KSG suggests that Nigeria's shift towards domestic refined oil could enable European countries to mitigate risks in their oil supply chains, particularly in relation to Russia.
This transition may result in an oversupply for nations such as Belgium, the Netherlands, and Norway due to the demand for Nigerian refined oil.
However, the report warns that if the government fails to resolve refinery challenges, it could lead to political instability, including violent protests, particularly as the removal of fuel subsidies may worsen the situation.