Petrol import persists amid rising local output

…NNPC denies importing in 2025

Petrol importation into Nigeria has persisted despite reported giant strides in local refining.

Energy analysts say the cost of petrol imports heavily burdens Nigeria, straining the nation’s resources and exacerbating economic challenges.

The recent commencement of operations at the Dangote Refinery, coupled with the rehabilitation of state-owned refineries, was expected to reduce the country’s reliance on imported petrol.

However, fuel importation has remained unabated, sparking concerns of persistent dependency on foreign petrol supplies.

“There should be competition between NNPC refineries and Dangote Refineries, not with importation,” said a senior industry executive. “By allowing fuel imports, we export jobs and economic value to foreign countries. This is not in the best interest of Nigeria.”

Data sourced from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) highlights shifts in supply volumes and daily averages, pointing to significant dependencies on imports despite increasing local refinery production.

Fluctuating import volumes

Petrol imports have played a critical role in meeting Nigeria’s fuel demand, but figures show notable variations throughout the year. January 2024 recorded an import volume of 1,357,044,721 litres, which slightly decreased to 1,343,509,376 litres in February.

The trend reversed in March, with imports rising to 1,461,889,416 litres, demonstrating increased reliance on external supply.

Subsequent months witnessed further fluctuations, with imports dropping to 1,288,974,567 litres in April before gradually increasing to 1,313,440,530 litres in May and 1,398,411,753 litres in June.

The second half of the year saw more significant movements, with a peak in October at 1,524,565,174 litres and a notable dip in November at 1,253,477,626 litres before slightly recovering to 1,482,726,064 litres in December.

Total petrol imports for the year amounted to approximately 13.76 billion litres, reinforcing Nigeria’s continued dependence on external fuel supply despite efforts to boost local refinery production.

Read also: Dangote/NNPC rift: Nigeria’s petrol import from Malta jumps 43 times to $2.08bn

Local refinery output remains limited

In contrast to import figures, local refinery production remained relatively low, further emphasising the reliance on imported petroleum. Between January and May 2024, local refineries produced only 794,369,526 liters of petrol, a significantly lower figure compared to import volumes.

The highest production within this period was observed in May, with 286,074,494 litres, while January recorded the lowest at 90,498,122 liters.

Petrol supply & daily consumption trends

According to NMDPRA data, the total petrol supply, encompassing both imports and local refinery output, stood at 14,553,681,578 liters for the year.

The supply followed similar patterns to import trends, with notable peaks in certain months, particularly in October and December.

The daily average petrol supply also demonstrated variability, with figures ranging from 42.3 million litres in May to a peak of 56 million liters in October. The overall daily average supply for the year stood at 43,775,636 liters, reinforcing the need for stable supply mechanisms to meet national fuel consumption needs.

Implication

On Tuesday, the naira depreciated to N1,545/$ in the parallel market and N1,512/$ in the official forex market.

The surging import bill is draining Nigeria’s foreign reserves, with an attendant impact on the stability of the domestic currency.

The Dangote Refinery, with a capacity of 650,000 barrels per day, was envisioned as a game-changer for Nigeria’s energy sector.

Aliko Dangote, president of Dangote Group, on October 29 2024 complained that the refinery was wasting money holding over 500 million liters (around 3.1 million barrels) of fuel in storage, while the company blamed illicit low-quality imports for undercutting its prices and threatened to sue the state oil company, NNPC, for continuing its fuel imports.

NNPC’s reaction

The NNPC on Tuesday firmly denied reports claiming that it recently imported 200 million litres of petrol.

It also disclosed that the company hasn’t imported a single volume of the product in 2025.

According to Olufemi Soneye, NNPC’s corporate communications officer, “Setting the Record Straight: NNPC Limited has not imported a single litre of PMS in 2025.”

The state-owned oil firm said it does not regulate the import operations of private marketers, stressing it is irresponsible to ascribe all petrol imports to NNPCL.

The company further clarified that, while it has not engaged in PMS imports this year, there is no legal barrier preventing it from doing so if circumstances necessitate such action.

He said, “We do not control the import activities of private marketers, nor do we issue import licenses. Attributing all PMS imports to NNPC is not just misleading—it is outright deceptive and irresponsible journalism that ignores basic fact-checking principles.

“While NNPC Limited has not imported PMS in 2025, let it be clear that there is no legal restriction preventing us from doing so if necessary.

“As Nigeria’s foremost energy company, we must ensure energy security. Should any supply shortages arise, NNPC Limited retains the full right and responsibility to step in and import to stabilise the market.”

Other refineries apart from Dangote

Apart from the Dangote refinery, other refineries in Nigeria include OPAC refinery (10,000 bpd) in Delta state; WalterSmith Refinery (5,000 bpd) in Imo state; Duport Midstream (2,500 bpd) in Edo State; and Edo Refinery (1,500 bpd) in Edo state.

Others include the Aradel Refinery (11,000 bpd) in Rivers State, the 60,000bpd old Port Harcourt refinery in Rivers State, 125,000bpd Warri Refinery in Delta State and 110,000bpd Kaduna Refinery in Kaduna State.