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India Helps Nigeria Become Petroleum Product Exporter for First Time

India played a key role in Nigeria becoming a net exporter of petroleum products for the first time, according to a Business Insider Africa report. The Dangote refinery in Lagos, operating at full capacity, has disrupted fuel supply chains, particularly amid Strait of Hormuz tensions. India's contribution includes engineering management by Engineers India Ltd, which renewed a $350 million contract, and training of 800 Nigerian graduates at Bharat Petroleum. With over 6,400 Indian workers on site, the refinery has enabled Nigeria to reverse decades of import dependence.

Key Points: India Helps Nigeria Become Petroleum Exporter

  • Nigeria becomes net exporter of petroleum products in March 2025
  • Dangote refinery operates at 650,000 barrels per day
  • Indian firm EIL gets $350 million contract extension
  • Over 6,400 Indian workers employed at peak construction
3 min read

India plays key role in Nigeria turning exporter of petroleum products: Report

India's key role in Nigeria's Dangote refinery turns the country into a net exporter of petroleum products for the first time, per report.

"The refinery's execution reflects a combination of Chinese industrial capacity and Indian engineering oversight - Business Insider Africa"

New Delhi, May 5

While the closure of the Strait of Hormuz amid the US-Israel war on Iran has disrupted supply chains of fuel-importing countries, it has also opened up new opportunities for countries like Nigeria to step up exports of petroleum product from its coastal refinery that has been built with Indian and Chinese assistance, according to a new report.

The Lagos-based refinery, owned by Aliko Dangote, Africa's richest man, is operating at full capacity of 650,000 barrels per day and supplying fuel across West, Central and East Africa, according to an article in Business Insider Africa news portal.

The article states that cargoes have reached markets from Senegal to Mozambique, with additional shipments extending into Europe, including the Netherlands and the United Kingdom, as well as parts of Asia.

"The refinery's execution reflects a combination of Chinese industrial capacity and Indian engineering oversight, underpinning both delivery speed and project scale, compared with typically longer timelines associated with Western contractors," the article points out.

More than eight Chinese firms have been involved in the project since inception, providing the industrial backbone that enabled large-scale delivery.

India's role has centred on engineering management and project continuity. In January, Dangote Group renewed a $350 million contract with Engineers India Ltd (EIL) to support the expansion of the refinery and petrochemicals complex, the article observes.

EIL will serve as Project Management Consultant and Engineering, Procurement and Construction Management consultant, replicating its role in the initial phase commissioned in 2024. At peak construction, more than 30,000 Nigerians were employed on the project alongside 6,400 Indian and 3,250 Chinese workers, reflecting the scale and technical demands of the refinery.

About 11,000 trained Indian workers were engaged, drawing scrutiny from regional stakeholders, although the company maintained that the refinery's complexity required global expertise, the article further states.

It highlights that between 2016 and 2018, the group sent Nigerian graduates to Bharat Petroleum Corporation Limited in Mumbai for training in refinery operations, maintenance and production, as part of efforts to build local technical capacity ahead of commissioning.The programme covered about 800 Nigerians, trained in batches of 50 over a 24-month period, providing exposure to large-scale refining systems in India, home to the Jamnagar Refinery, the world's largest refining complex.

"Notably, Indian engineer Devakumar V. G. Edwin, who served as Vice President for Oil and Gas at Dangote Industries, played a key role in the refinery's technical development and operational rollout," the article states.

The article highlights that the refinery's impact is beginning to show in trade flows with Nigeria becoming a net exporter of refined petroleum products in March for the first time, reversing decades of import dependence.

- IANS

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Reader Comments

P
Priya S
Interesting how Indian expertise combined with Chinese manufacturing capability is changing global energy dynamics. But I do wonder - with all our talent working on foreign projects, are we doing enough to upgrade our own refineries? Our public sector units still lag in efficiency.
V
Vikram M
This is what South-South cooperation looks like! India training 800 Nigerian engineers at BPCL, deploying 11,000 skilled workers. It's not just business; it's capacity building. Africa's rise is inextricably linked with India's expertise. Kudos to all involved!
S
Sneha F
While I'm proud of Indian engineers abroad, the 11,000 Indian workers number does raise eyebrows. Why couldn't more local Nigerians be trained? It's a delicate balance between sharing expertise and creating dependency. Hope the knowledge transfer is sustainable in the long run.
R
Rahul R
India playing a key role in Africa's energy transformation! The strait of Hormuz disruption has actually created opportunities for alternative supply chains. This is strategic - if Nigeria becomes a major exporter, it reduces global dependence on Middle East oil. Win-win for India and Africa.
M
Michael C
Fascinating geopolitics - the US-Iran tensions inadvertently boosting African refining capacity, with India and China as the key enablers. The Jamnagar reference is apt; India's refining prowess is world-class. This is soft power at its best - you don't need armies, just good engineers.

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