According to a recent report by the National Bureau of Statistics (NBS), Nigeria’s expenditure on petrol imports rose sharply in 2024, reaching N15.42 trillion. This marks a 105% increase compared to the N7.51 trillion spent in 2023, despite significant investments in domestic refining.
The rise in fuel import costs comes at a time when many expected Nigeria to reduce its reliance on foreign petrol supply. With the launch of the Dangote Petroleum Refinery and the ongoing rehabilitation of government-owned refineries, the country had been poised to produce more fuel locally. However, data shows that these refineries have yet to reach full capacity, forcing marketers to continue importing petrol to meet demand.
Over the years, Nigeria’s fuel import bill has consistently increased. In 2020, the country spent N2.01 trillion on petrol imports, which more than doubled to N4.56 trillion in 2021. The trend continued with N7.71 trillion spent in 2022 before slightly dropping to N7.51 trillion in 2023. However, the 2024 figure of N15.42 trillion is the highest in the country’s history.
Industry reports indicate that between September 11 and December 5, 2024, marketers imported around 2.3 billion litres of petrol. This is despite earlier claims by some oil marketers that they planned to halt fuel imports and prioritize locally refined products.
Nigeria’s major refineries include the Dangote Petroleum Refinery in Lagos, with a capacity of 650,000 barrels per day, and the Port Harcourt Refining Company (PHRC), which has a total refining capacity of 210,000 barrels per day. However, PHRC is currently only producing fuel from its older plant, which has a capacity of 60,000 barrels per day. The Warri Refining and Petrochemical Company (WRPC) also resumed operations in December 2024, but both PHRC and WRPC, managed by the Nigerian National Petroleum Company Limited (NNPCL), are yet to operate at full capacity.
Despite these improvements in local refining, major oil marketers have continued to bring in refined petroleum products. Reports show that in the past five months alone, 6.38 billion litres of petrol and diesel were imported. Independent marketers and retailers have expressed concerns over this situation, as the high importation costs—amounting to about N6 trillion—put additional pressure on Nigeria’s foreign exchange reserves.
The Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, stated that importation plays a key role in ensuring competitive fuel prices in the country.
“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 explained.
He also noted that while the goal is to boost local refining, competition between imported and locally refined petrol helps regulate prices at fuel stations.
