According to the National Bureau of Statistics (NBS), Nigeria’s total imports from Malta hit a record ₦766.81 billion in the third quarter (Q3) of 2024, accounting for 5.23% of the nation’s overall imports of ₦14.67 trillion for the period. Given that the Q3 2024 figure represented 74.1% of Malta’s total imports during the course of the three quarters of 2023, this was a notable rise over prior years. In Q3 2024, Malta rose to become Nigeria’s fifth-largest trading partner. The United States, Belgium, India, and China were the other top import partners.
In 2023, Malta’s imports totaled ₦12.25 trillion, representing 8.41% of Nigeria’s total imports from Europe. This increase comes after previous scandals involving Aliko Dangote and the Nigerian National Petroleum Company Limited (NNPCL), which raised concerns regarding the nature of these transactions, even though the precise commodities shipped from Malta were not made public. Nigerian industrialist Aliko Dangote accused officials of running blending units in Malta on behalf of the Nigerian National Petroleum Company Limited (NNPCL).
NNPCL officials, including CEO Mele Kyari, refuted these claims.
More so, Dangote argues that Nigeria receives inferior petroleum products from these refineries, which have damaged automobiles and other gear. NNPCL officials, including CEO Mele Kyari, refuted these claims, claiming that no workers in Malta own or run such establishments. Nigeria’s growing need for petroleum imports from Malta, especially because its own refineries are still not operating, coincided with this debate. Approximately $237.81 million worth of commodities were imported by Nigeria from Malta between 2013 and 2016, with no notable activity from 2017 to 2022.
However, imports increased 342% from previous levels to $2.08 billion in 2023. By Q3 2024, Malta was Nigeria’s fifth-largest trading partner, accounting for 5.23% of its total imports, which were worth ₦766.81 billion. On the other hand, imports from the United States, Belgium, India, and China continued to be substantially larger, with China accounting for 24.36% of Nigeria’s total imports. Nigeria’s Trade balance and reliance on outside sources for petroleum products are called into question by the abrupt rise in imports from Malta. Malta’s position as a supplier was strengthened by this trade, while Nigeria’s trade deficit and dependence on imports were made worse by inefficient refineries at home.
Domestic and foreign players have expressed concern about these trends.
This circumstance brings to light other significant issues facing Nigeria’s energy sector, such as underutilisation of refineries and reliance on petroleum subsidies, which were eliminated only in 2023. Allegations of gasoline mixing operations in Malta seem to be connected to the country’s rise to prominence as a supplier. Malta’s advantageous Mediterranean position might potentially make it a desirable hub for the trafficking of petroleum. Industry insiders speculate that Malta’s prominence in Nigeria’s import data may have been influenced by claims of inferior products and lax oversight. Nonetheless, both domestic and foreign players have expressed concern about these trends.
Stricter laws governing the import and quality control of petroleum products ought to be implemented in Nigeria. Imported goods would be guaranteed to fulfill the necessary criteria via a strong monitoring system backed by cutting-edge technology, preventing the importation of inferior fuel. In order to maintain transparency and reduce the possibility of Corruption within domestic regulatory authorities, independent third-party organisations could be hired to supervise these checks. Nigeria should diversify its energy sources to lessen the hazards connected with a reliance on imported petroleum.
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Sustainable alternatives might be offered by increasing investments in Renewable Energy sources like solar, wind, and biofuels. These investments would support the objectives of the global energy transition and lessen the negative environmental effects of reliance on fossil fuels. Strategic concerns arise from relying too much on Malta, a very small participant in the world’s oil markets. Nigeria ought to expand its range of commercial partnerships by negotiating more equitable and open agreements with bigger, more regulated petroleum suppliers. By diversifying, Nigeria would also be able to take advantage of better conditions for contracts and prices, which would lessen the possibility of abuse.