Nigeria’s Dangote Petroleum Refinery is increasingly emerging as a major player in the global energy market, with a report by Reuters indicating a surge in its jet fuel exports to the United States.

According to ship-tracking service Kpler, the refinery has delivered six vessels carrying approximately 1.7 million barrels of jet fuel to U.S. ports in March alone, with another 348,000 barrels expected to arrive at the Everglades terminal by the end of the month.

This uptick in Nigerian jet fuel shipments to the U.S. has led to increased demand for storage tanks in Houston and New York Harbor. TankTiger reported that requests for storage in April have averaged 700,000 barrels—five to six times the usual monthly demand.

The 650,000 barrels-per-day (bpd) refinery, Africa’s largest and one of the top 10 globally, is currently operating at around 85% capacity and aggressively pushing fuel shipments to international markets, particularly North America. With U.S. jet fuel imports rising to their highest level in two years, Dangote’s exports could play a role in stabilizing fuel prices ahead of the peak summer travel season.

The refinery has also capitalized on a maintenance shutdown at Phillips 66’s Bayway refinery in New Jersey, giving it a competitive edge in the U.S. market. However, analysts warn that this window of opportunity may soon close due to high U.S. jet fuel inventories. The Energy Information Administration (EIA) reported that U.S. jet fuel stocks reached 45.2 million barrels at the end of February, the highest level for that month since 1999.

Challenges in the Domestic Market

Despite its increasing influence on the global energy landscape, the Dangote refinery continues to struggle with hurdles in the Nigerian market. One major issue is the continued importation of petroleum products despite the refinery’s vast capacity. The company is currently in a legal battle with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over its continued issuance of import licenses to petrol marketers, a move that Dangote argues undermines local refining efforts.

Securing a steady crude oil supply has also proven difficult. Despite Nigeria’s status as a major oil-producing nation, the Dangote refinery relies heavily on U.S. crude to meet its production needs. The federal government’s Naira-for-Crude arrangement, which was meant to support local refineries by allowing them to purchase crude oil in Naira, has ended after a period of inconsistency.

With the cancellation of the Naira-for-Crude deal, it is expected that the Dangote refinery will further shift its focus to the international market, prioritizing exports over domestic sales. This move could enhance the refinery’s profitability but also come with consequences for Nigeria’s domestic fuel market.

The refinery had previously been selling products to local marketers at a lower rate, helping to stabilize prices. However, analysts warn that without the Naira-for-Crude framework, petrol prices in Nigeria are likely to rise, putting additional pressure on consumers who are already grappling with economic hardship.

As a result, the refinery has stopped selling petroleum products to Nigerian marketers in Naira, citing an imbalance between its sales revenue and crude oil purchase obligations.

“Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars,” the company said in a statement earlier this month.

This decision could further strain Nigeria’s foreign exchange reserves and lead to higher petroleum product prices in the domestic market, analysts warn.

The Dangote refinery’s ability to compete internationally highlights its potential as a major global refining hub. However, without significant policy reforms and structural changes in Nigeria’s downstream oil sector, the company’s struggles at home may continue to hinder its full economic impact within the country.

Tesla’s sales in Europe plummeted 44% last month, marking one of the most significant declines for the Texas-based electric vehicle (EV) maker in recent years. The drop, recorded across 25 European countries—including the UK, Norway, and Switzerland—comes amid growing concerns among shareholders that Elon Musk’s controversial political interventions are turning off potential buyers.

According to Jato Dynamics, Tesla sold less than 16,000 vehicles in the region in February, its lowest market share (9.6%) for the month in five years. This follows an even sharper 45% decline in January, where sales dropped from 18,161 units in 2024 to 9,945 this year.

Musk’s increasingly visible role in Donald Trump’s administration, coupled with his vocal support for Germany’s far-right AfD party and public political stunts—such as brandishing a chainsaw at a conservative conference—have fueled concern that Tesla is facing a growing consumer backlash. Protests targeting Tesla dealerships have also emerged, further complicating the company’s European sales outlook.

Despite Tesla’s struggles elsewhere, the UK market proved to be an exception. The Society of Motor Manufacturers and Traders (SMMT) reported a 21% rise in new Tesla car registrations in February, with the Model 3 and Model Y ranking as the second and third best-selling cars in the country, behind the Mini Cooper. However, Tesla’s recent success in the UK does not necessarily counter the broader trend of declining European sales. Analysts argue that the UK’s EV incentives, fleet sales, and Tesla’s ongoing price cuts may have artificially buoyed demand in the short term.

Competitors Are Gaining Ground

Tesla’s sales slump comes as European and Chinese automakers rapidly gain ground. Volkswagen reported a 180% surge in battery electric vehicle (BEV) sales, reaching nearly 20,000 units in February. BMW and Mini combined to sell 19,000 BEVs, closing in on Tesla’s total, while Polestar recorded an 84% increase, delivering over 2,000 vehicles. BYD, the Chinese EV giant, saw a 94% sales increase in Europe, surpassing the 4,000-vehicle mark for the month.

BYD’s financial strength further underscores its growing dominance in the EV sector. The company reported record-breaking annual revenue of 777 billion yuan ($107 billion) for 2024, a figure that eclipsed Tesla’s $97.7 billion revenue from the previous year. In its earnings report released on Monday, BYD disclosed a net profit surge of 34% year-over-year to just over 40 billion yuan ($5.55 billion). This exceeded analysts’ expectations of $5.44 billion but remained below Tesla’s $7.1 billion net profit for 2024.

BYD now sells nearly as many electric vehicles as Tesla, with 1.76 million units sold last year compared to Tesla’s 1.79 million. When including hybrid sales, BYD is significantly larger, delivering 4.27 million vehicles in 2024—almost matching Ford’s 4.5 million global sales.

Musk’s Politics Hurts Tesla in Europe

Elon Musk’s political affiliations and increasingly divisive public persona are impacting Tesla’s brand perception, particularly in progressive-leaning markets like Germany, France, and Scandinavia. His endorsement of Germany’s far-right AfD party, repeated criticisms of European leaders, and provocative social media posts have alienated a portion of Tesla’s historically liberal customer base.

Some Tesla owners have reportedly sold their cars in protest, while prospective buyers explore alternatives from legacy European automakers or Chinese brands.

However, analysts believe that Tesla’s slump can’t be solely attributed to Musk’s politics. They argue that multiple business factors may be contributing to the decline, including the transition of Tesla’s bestselling Model Y to an updated version, disruptions in government EV incentives in key markets, and rising competition.

Felipe Muñoz, a global analyst at Jato Dynamics, noted that Tesla is experiencing a period of immense change. In addition to Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y before it rolls out the update.

“Tesla is experiencing a period of immense change. In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y – its bestselling vehicle – before it rolls out the update,” he said.

“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”

Tesla’s European decline comes amid wider shifts in the global EV market, with Chinese automakers expanding aggressively and legacy carmakers ramping up their electric vehicle production. BYD, which has already surpassed Tesla in global revenue, has set ambitious targets, forecasting between 5 million and 6 million vehicle sales in 2025. Meanwhile, Volkswagen and BMW continue to increase their BEV production, further eroding Tesla’s early-mover advantage.

The total number of BEV registrations across Europe rose by 25% in February, highlighting that while Tesla’s sales are shrinking, the overall EV market continues to grow. This underscores a fundamental shift in consumer preference—one that no longer revolves solely around Tesla.

Tesla remains a dominant force in the global EV market, but its diminishing influence in Europe raises questions about whether it can sustain long-term growth in an increasingly competitive landscape.

While Musk’s political controversies may be alienating some buyers, the company’s challenges in Europe are also tied to market forces beyond his personal brand. With Tesla’s rivals gaining momentum, analysts believe the company will need to rethink its European strategy, whether through price cuts, new models, or an aggressive marketing push to regain lost ground.

Tech giant IBM is set to eliminate nearly 9,000 jobs in the United States in 2025, marking one of the company’s largest workforce reductions in recent years.

While many of these roles will be relocated to India, it remains unclear if AI-driven automation—which has contributed to other IBM job cuts in the past—played a role in this latest round of layoffs.

The cuts, first reported by The Register, will impact multiple IBM divisions, including its Cloud Classic unit. Built from IBM’s 2013 acquisition of SoftLayer, Cloud Classic is seeing about 25% of its workforce affected. Other departments expected to face job losses include consulting, cloud infrastructure, sales, corporate social responsibility, and internal systems teams.

The layoffs are expected to affect IBM employees across multiple U.S. locations, including Raleigh, North Carolina; New York City and State; Dallas, Texas; and California.

IBM’s Long-Term Offshoring Strategy

The latest job cuts align with IBM’s ongoing strategy of shifting a significant portion of its workforce to lower-cost labor markets, with India being the primary destination.

“They’re trying to move as many roles to India as possible,” a source told The Register.

IBM already has an extensive presence in India, with offices in Bengaluru, Hyderabad, Pune, and Chennai. The company is expected to increase hiring in these cities, particularly in cloud computing, infrastructure, sales, and consulting roles.

A former IBM employee noted that IBM currently lists more job openings in India than in the United States, further reinforcing the company’s commitment to shifting jobs overseas.

IBM CEO Arvind Krishna has openly praised India’s deep talent pool and cost advantages, frequently highlighting it as a critical part of IBM’s future workforce strategy.

The Role of AI in IBM’s Workforce Reduction

Although AI-driven automation has been linked to many job cuts in the tech sector, including previous layoffs at IBM, it is unclear whether AI played a role in this specific round of job reductions.

In 2023, Krishna publicly stated that IBM planned to pause hiring for certain non-customer-facing roles, expecting that AI would eventually replace thousands of jobs. Around 7,800 positions in IBM’s back-office operations were identified as likely to be phased out due to AI advancements.

However, sources familiar with the latest layoffs did not confirm whether automation contributed to the decision.

The tech industry as a whole has seen a wave of job losses linked to AI and cost-cutting measures. Companies including Google, Amazon, Meta, and Microsoft have all cut thousands of jobs, citing automation, restructuring, or shifting business priorities.

New Workplace Policies for Remaining U.S. Employees

For the IBM employees not affected by the layoffs, the company has introduced stricter workplace policies, requiring employees to return to the office at least three days a week starting in late April.

According to sources, IBM will monitor badge swipes, and while employees can request medical exemptions, such requests are reportedly being discouraged by management.

IBM’s return-to-office push is part of a broader trend in the tech sector, as major companies shift away from the remote work policies established during the pandemic. However, some employees suspect that the new policy is designed to encourage voluntary resignations, further reducing IBM’s U.S. workforce without the need for additional layoffs.

IBM has not officially confirmed the total number of positions being moved to India, but the shift reflects a broader transformation in the company’s workforce strategy.

In March 2024, IBM notified employees of impending job cuts within its marketing and communications departments, signaling the start of this latest wave of layoffs.

The job reductions also mirror a larger trend across the tech industry, where companies are increasingly cutting jobs in high-cost regions and expanding in lower-cost labor markets.

While the full impact of these layoffs on IBM’s U.S. operations remains to be seen, it is clear that the company’s strategy is increasingly focused on reducing domestic labor costs while leveraging international markets for growth.

Good move: “The Nigerian insurance industry is set to undergo a transformative phase, with insurers projected to inject approximately N600 billion in fresh capital to meet evolving regulatory requirements.” Yet, the problem of the Nigerian insurance industry goes beyond capital. The real challenge is the operating policy in the industry, and that is why the industry has been unable to innovate. Unless you fix that, even with more funds, nothing great will happen as they’re not likely to create products that customers will be interested in.

Today, the insurance penetration is less than 5% and the construct is that Nigerians do not like insurance. I do not buy that. I think insurers have not created the right products. People used to hate banking until the 1990s when new generation banks used tech to make banking better. Insurance is yet to find similar moments.

Any person reading this can be a bank CEO in Nigeria but in the insurance industry, you must be a member of CIIN which means you have to be normalized before you can get there. Magically, you are in, and you become the status quo. The Central Bank of Nigeria has allowed fintechs to challenge banks, but there is nothing coming out of NAICOM, the insurance industry regulator.  That said, I wish the industry good luck.

Nigerian Insurance Sector Poised for Transformation With N600bn Capital Injection as Reform Bill Nears Passage – Agusto & Co