Nigeria’s petrol import bill soared to an unprecedented ₦15.42 trillion in 2024, more than doubling the previous year’s ₦7.51 trillion, despite increased domestic refining capacity.
Data from the National Bureau of Statistics (NBS) revealed that fuel import costs jumped by 105.3%, highlighting the country’s continued reliance on foreign supply even after the launch of the 650,000-barrel-per-day Dangote Petroleum Refinery and the revival of state-owned refineries.
While expectations were high for reduced importation, local refineries have yet to meet domestic demand. The Port Harcourt Refining Company (PHRC) and the Warri Refining and Petrochemical Company (WRPC), both managed by the Nigerian National Petroleum Company Limited (NNPC), have resumed operations, but production remains limited.
Between September 11 and December 5, 2024, marketers imported 2.3 billion litres of petrol, contradicting earlier claims that they would focus on domestic supply.
In the past five months alone, major oil marketers have imported 6.38 billion litres of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel), costing around ₦6 trillion and putting additional pressure on the country’s foreign exchange reserves.
Independent marketers have criticised the continued reliance on imports, warning that it worsens Nigeria’s forex crisis.
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However, Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), earlier defended the practice, arguing that it keeps prices competitive.
“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,” Isong stated.
He acknowledged the importance of local refining but stressed that competition with imported fuel ensures fair pricing.
“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 explained.
The sustained surge in fuel imports raises concerns about the effectiveness of Nigeria’s refining policies and the ability of local refineries to reduce dependency on foreign supply.