Nigeria’s spending on petrol imports surged by 105% in 2024, reaching N15.42tn, compared to N7.51tn in 2023, according to data from the National Bureau of Statistics (NBS). This sharp rise came despite efforts to boost local refining capacity. The Dangote Petroleum Refinery (650,000 barrels per day) began operations last year, while the Port Harcourt Refinery (60,000bpd operational) and the Warri Refinery resumed production in December 2024. However, these facilities have yet to meet the country's full demand for petrol.
Over the past five years, Nigeria’s fuel import costs have steadily risen:
N2.01tn in 2020, N4.56tn in 2021, N7.71tn in 2022, N7.51tn in 2023, N15.42tn in 2024 (the highest ever recorded).
Despite improved refining capacity, major oil marketers have continued to import petrol. Between September and December 2024, marketers imported 2.3 billion litres of petrol.
While some marketers previously announced plans to rely on local supply, imports have continued due to gaps in domestic production. In the past five months alone, marketers imported 6.38 billion litres of petrol and diesel, costing about N6tn and putting pressure on Nigeria’s foreign exchange reserves.
The Major Energies Marketers Association of Nigeria (MEMAN) defended the ongoing imports, saying they help promote competition and stabilize prices. MEMAN's Executive Secretary, Clement Isong, explained that imported petrol ensures local refiners keep their prices competitive, ultimately benefiting consumers.
He added, “We support local refining, but competition between imported and locally refined products keeps pump prices in check.”
Source: The PUNCH
