Petrol Imports Surge 105% to N15tn Despite Local Refining Efforts
Nigeria’s petrol imports soared in 2024, rising by 105.3 percent to N15.42 trillion from N7.51 trillion in 2023, according to the latest foreign trade statistics report by the National Bureau of Statistics (NBS). This increase occurred despite significant investments in local refining aimed at reducing dependence on imported fuel.
The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, commenced operations last year, while efforts to revamp other domestic refineries continued. However, available data suggests these facilities have yet to reach full production capacity to meet local demand.
Over the past five years, Nigeria’s petrol import bill has experienced a steady rise. In 2020, the country spent N2.01 trillion on fuel imports, a figure that more than doubled to N4.56 trillion in 2021. By 2022, it increased further to N7.71 trillion before slightly dropping to N7.51 trillion in 2023. However, in 2024, the cost of petrol imports surged to an all-time high, marking the largest fuel import bill in the nation’s history.
Between September 11 and December 5, 2024, marketers imported approximately 2.3 billion litres of petrol, contradicting earlier announcements by some industry players who had expressed intentions to shift focus to domestic supply.
Nigeria’s key local refineries include the Dangote Petroleum Refinery in Lagos and the Port Harcourt Refining Company (PHRC) in Rivers State, with a combined capacity of 860,000 barrels per day. Currently, PHRC operates only its older plant, which has a capacity of 60,000 barrels per day. Additionally, the Warri Refining and Petrochemical Company (WRPC) resumed operations in December 2024. Both PHRC and WRPC are managed by the Nigerian National Petroleum Company Limited (NNPCL).
Despite these developments, major oil marketers have continued importing refined petroleum products. In the past five months, they have imported 6.38 billion litres of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel), a process that has cost the country approximately N6 trillion and intensified pressure on foreign exchange reserves.
The continued reliance on imports has drawn criticism from independent marketers and retailers, who argue that excessive importation undermines local refining efforts. However, the Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), Clement Isong, defended the practice, stating that fuel imports promote market competition and help stabilize prices.
“What importation does for us is that it contributes to the market’s competitiveness. The price movements and competition we are seeing are results of importation,” Isong explained. “While we strongly support local refining, ensuring that domestically refined fuel competes with imported prices is what keeps pump prices as low as possible.”
As Nigeria strives for energy self-sufficiency, the balance between local refining and fuel importation remains a critical issue in the petroleum sector.