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Nigeria Becomes Key Energy Import Partner for India

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Nigeria Energy Import Partner India grows as India diversifies crude, LPG, and LNG imports from Africa amid geopolitical tensions

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Nigeria is increasingly emerging as a strategic energy partner for India as the Asian nation intensifies efforts to diversify its import sources and reduce reliance on traditional supply routes affected by geopolitical tensions in West Asia.

Also read: FG Lifts Petrol Import Ban as Nigeria Approves New Licences Amid Supply Concerns

The growing importance of Nigeria Energy Import Partner India relations comes as India expands its procurement of crude oil, liquefied petroleum gas and liquefied natural gas from African countries, including Nigeria, Algeria and Angola, in response to disruptions linked to tensions involving Israel, the United States and Iran.

According to reports attributed to officials and cited by the Times of India, India has been actively broadening its energy supply network across multiple regions to ensure stability in fuel availability.

This shift has seen increased engagement with suppliers in Africa alongside traditional partners such as the United States, Russia, Canada and Norway.

For liquefied natural gas, discussions and shipments are also underway with countries including Cameroon, Equatorial Guinea and Mozambique, with some cargoes already secured and others at advanced negotiation stages.

The move reflects a broader strategy to strengthen supply resilience and reduce dependence on the Strait of Hormuz, a critical global energy chokepoint.

India currently imports between 5.5 and 5.6 million barrels of crude oil per day, with a significant portion previously routed through the Strait of Hormuz.

Prior to the recent tensions, about 40 to 45 per cent of these imports passed through the corridor, highlighting its strategic importance and vulnerability to disruption.

Officials noted that India has significantly diversified its crude sourcing base over the past decade, expanding from 27 countries to 41, while reducing reliance on the Strait of Hormuz to roughly 30 per cent.

This diversification has been supported in part by increased imports from African producers, strengthening Nigeria’s role in India’s evolving energy mix.

Liquefied petroleum gas imports also remain heavily dependent on external sources, with nearly 60 per cent of India’s annual demand of about 31 million tonnes met through imports.

A large share of these shipments previously transited through the Strait of Hormuz, further reinforcing the need for alternative supply routes.

Despite global uncertainties, Indian authorities have maintained that domestic inventories remain sufficient, with no major supply disruptions reported.

While there has been a temporary increase in LPG delivery timelines due to higher demand, officials expect normalisation as conditions stabilise.

Also read: Senator Jibrin Barau: Why he is North West’s most important political force

Overall, India’s strategy of diversifying its energy imports, coupled with growing engagement with African suppliers such as Nigeria, is positioning the country to better manage external shocks while maintaining steady access to critical energy resources.

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AICL Woos Ugandan Investors, Invites Them to ABIE 2027

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AICL asked Ugandan investors Nigeria to use Abuja as an entry point and to attend ABIE 2027, as officials from both countries pushed AfCFTA trade links

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Tinubu to Open Niger Delta Economic Summit in Port Harcourt

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Tinubu Niger Delta summit opens in Port Harcourt as investors and policymakers gather to drive investment, innovation and industrial growth

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Dangote Refinery Sets ₦525 Share Price for Landmark IPO

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Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.

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The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.

The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.

The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.

The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.

The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.

The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.

The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.

The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.

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