Nigeria’s persistent reliance on imported fuel was highlighted by recent research, which showed that the country’s petrol imports doubled in 2024 despite an increase in indigenous refining capacity.
The cost of importing petrol increased by 105.3 percent to N15.42 trillion in 2024 from N7.51 trillion in 2023, according to the National Bureau of Statistics’ most recent foreign trade statistics report. This dramatic rise in fuel import costs coincided with great expectations that, after large expenditures in domestic refining, there would be less dependence on foreign supplies.
Reliance on imports was anticipated to be lessened by the Dangote Petroleum Refinery’s 650,000 barrels per day capacity starting operations last year and continuing efforts to revive the other nearby refineries.
The data that is currently available to BrandSpur national news stories desk, however, indicates that these refineries have not yet reached their maximum production capability to satisfy local demand. Nigeria has seen a steady increase in the cost of importing petrol over the last five years.
Fuel imports cost the nation N2.01 trillion in 2020, more than doubling to N4.56 trillion in 2021. The amount rose to N7.71 trillion by 2022 and then marginally decreased to N7.51 trillion in 2023. But the biggest petrol import bill in Nigeria’s history occurred in 2024 when gasoline import spending soared to an all-time high of N15.42 trillion.
Reports had previously revealed that oil marketers have persisted in importing and distributing fuel around the country, even after three significant refineries in Nigeria started producing it.
Between September 11, 2024, and December 5, 2024, marketers imported 2.3 billion gallons of petrol. The ongoing importation of petrol runs counter to a public declaration made by a group of marketers who had previously declared their intention to stop importing petrol and concentrate on domestic supply.
The two local refineries are the Port Harcourt Refining Company (PHRC) in Rivers State, which can process 210,000 barrels per day, and the Dangote Petroleum Refinery in Lagos, which can process 650,000 barrels per day. PHRC’s ancient plant, which can manufacture 60,000 barrels per day, is still in operation. Additionally, in December 2024, the Warri Refining and Petrochemical Company opened for business.
The Nigerian National Petroleum Company Limited is in charge of both WRPC and PHRC.
Major oil marketers have continued to import refined petroleum products despite Nigeria’s enhanced domestic refining capability according to research, which also noted that during the last five months, they imported 6.38 billion litres of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel).
However, independent merchants and marketers opposed the development through their various associations, as the importation of these commodities cost almost N6 trillion, further straining the nation’s foreign exchange reserves.
Importation encourages competition, which lowers PMS prices, according to Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN).
He went on to say: “What importation does for us is that it contributes to the market’s competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful.
“We want local refining. Let’s be clear. We want local refining. What ensures that we have the most competitive price is that locally refined fuel prices have to compete with imported prices. That is what keeps our prices at the pump as low as possible,” he added.
