Nigeria bought $2.08 billion worth of petroleum from Malta in 2023, up 43 times in ten years from $47.5 million in 2013.
The News Chronicles collection of these significant numbers contributes to the current discussion in the oil industry, especially to the conflict between the Nigerian National Petroleum Company (NNPC) and the Dangote Group.
The information gathered from Trade Map, an international database on trade statistics, revealed that Nigeria imported bituminous mineral and petroleum oils valued at $2.08 billion in 2023 – a 342% increase from $47.5 million in 2013.
There were fluctuations in import values from 2013 to 2016. The amount peaked in 2015 at $117.01 million, and then dropped significantly to $13.32 million in 2016. From 2017 to 2022, Malta’s petroleum imports showed no value for six years in a row.
Petroleum imports increased significantly in 2023, totalling $2.08 billion. Compared to prior years and years when there were no imports, this indicates a significant growth.
The abrupt increase in imports from Malta, a relatively small player in the world oil markets, has sparked concerns and conjecture in the wake of claims made by Dangote Industries Limited chairman Aliko Dangote that certain employees of the Nigerian National Petroleum Company (NNPC) Limited, as well as oil traders and terminals, have established blending plants in Malta.
Dangote said before the House of Representatives on Monday, “Some of the terminals, some of the NNPC people, and some traders have opened blending plants somewhere off Malta,” adding that all parties involved are familiar with the whereabouts of the blending plants.
Although an oil blending facility cannot refine oil, it may mix additives with re-refined oil – used motor oil that has been cleaned to remove water, gasoline, and dirt – to produce finished lubricant goods.
Kelvin Emmanuel, co-founder and CEO of Dairy Hills and an energy expert, stated on X that “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.”
Kyari’s response
Mele Kyari, group chief executive officer of NNPC, responded to the allegation by denying owning a blending factory other than a small-scale local agricultural enterprise. He further said that he was unaware of any NNPC staff members engaged in such.
“To address the accusations concerning the blending plant, let me clarify that aside from a small local agricultural business, I do not own or operate any business anywhere in the world, either directly or through a proxy,” he said.
“I am not aware of any NNPC employee who owns or runs a blending plant in Malta or any other location worldwide.”
He continued by saying that NNPC’s commercial activities and strategic decisions are unaffected by the blending plant in Malta or anywhere else in the world.
He did, however, promise to ensure that any NNPC employees involved would face consequences.
“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,” his remarks concluded.
Analyst for oil markets Ike Ibe, however, claimed that the data unequivocally demonstrates that Dangote’s current claim contains some veracity.
“Data speaks louder than words. From what I’ve seen, there is a trade slump between 2017 and 2022, with no imports from Malta. And suddenly, Malta’s oil imports soared to $2.08 billion. Something isn’t adding up here,” he added.
What to note about Malta
Malta is one of the world’s smallest countries, with a total area of only 316 square kilometres. It is an island nation in the Mediterranean Sea in Southern Europe. 531,113 people are thought to live there, and its GDP is projected to be $18 billion.
Malta is an archipelago situated between Sicily and the coast of North Africa in the central Mediterranean. Historic buildings associated with a line of kings, including the Romans, Moors, Knights of Saint John, French, and British, are well-known in this country. It features many megalithic temples, fortifications, and the underground complex of halls and burial chambers known as the Ħal Saflieni Hypogeum, which dates back to approximately 4000 B.C.
