Dangote-NNPC rift: Petrol imports from Malta hit $2bn

…Up 43 times in 10 years

…Rise by over $1.9bn after five years of lull

The value of Nigeria’s petroleum imports from Malta jumped 43 times in 10 years, reaching $2.08 billion in 2023 from $47.5 million in 2013.

These import figures gathered by BusinessDay enrich the ongoing discourse in the oil sector, particularly with respect to the rift between Dangote Group and the Nigerian National Petroleum Company (NNPC).

The data sourced from Trade Map, a global database on international trade statistics, showed that Nigeria imported petroleum oils and oils obtained from bituminous minerals worth $ 2.08 billion in 2023, a 342 percent increase from $47.5 million as of 2013.

Between 2013 and 2016, import values fluctuated. There was a peak in 2015 at $117.01 million, followed by a significant drop in 2016 to $13.32 million. For six consecutive years, from 2017 to 2022, petroleum imports from Malta recorded zero value.

In 2023, there was a substantial jump in petroleum imports, reaching $2.08 billion. This represents a massive increase compared to previous years and the years with no imports.

The sudden surge in imports from Malta, a relatively minor player in global oil markets, has raised eyebrows and fueled speculation following allegations from Aliko Dangote, chairman of Dangote Industries Limited, that some personnel of Nigerian National Petroleum Company (NNPC) Limited, oil traders and terminals have opened blending plants in Malta.

“Some of the terminals, some of the NNPC people and some traders have opened blending plants somewhere off Malta,” Dangote spoke at the House of Representatives on Monday, noting that the areas of the blending plants are well-known by all the stakeholders.

An oil blending plant has no refining capability but can be used to blend re-refined oil (a used motor oil that has been treated to remove dirt, fuel, and water) with additives to create finished lubricant products.

“Someone who doesn’t know how SPVs work with shares warehoused in trusts that have unknown permanent beneficiaries will think Alhaji doesn’t know what he’s saying,” Kelvin Emmanuel, co-founder and CEO of Dairy Hills and energy expert said on X.

Kyari’s rebuttal

Reacting to the accusation, Mele Kyari, group chief executive officer of NNPC, denied owning a blending plant, except a local mini agriculture venture. He also denied knowing of any NNPC employee involved in such. He stated, “To clarify the allegations regarding the blending plant, I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini agric venture.

“Neither am I aware of any employee of the NNPC that owns or operates a blending plant in Malta or anywhere else in the world.”

He added that the blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

However, he vowed to ensure sanctions against any NNPC staff member involved in it.

“For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security,” he concluded.

But Ike Ibe, an oil markets analyst, said the data clearly shows that there is some truth in Dangote’s recent assertion.

“Data speaks more than words. From what I have seen, there is a trade lull between 2017 and 2022 – zero import from Malta. And suddenly, oil imports from Malta jumped to $2.08 billion. Something is not adding up here,” he noted.

Facts about Malta

Malta is one of the smallest countries in the world, with a total area of just 316 square kilometres. It is an island country in Southern Europe located in the Mediterranean Sea. Its population is estimated at 531,113, while GDP is put at $18 billion.

Source: businessday