Nigeria’s petrol imports surged in 2024, doubling despite an increase in domestic refining capacity, highlighting the country’s continued reliance on imported fuel, according to findings.
The latest data from the foreign trade statistics report by the National Bureau of Statistics revealed that the cost of petrol imports rose by 105.3 per cent to N15.42 trillion in 2024, up from N7.51 trillion in 2023.
This sharp rise in fuel import expenditure came at a time when expectations were high for a reduction in reliance on foreign supply, following significant investments in local refining.
The commencement of operations at the 650,000-barrel-per-day Dangote Petroleum Refinery last year, alongside ongoing efforts to revive other local refineries, was anticipated to reduce import dependence.
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However, available data suggests that these refineries have yet to reach full production capacity, and as a result, domestic demand has not been met.
Over the past five years, Nigeria’s petrol import bill has steadily increased. In 2020, the country spent N2.01 trillion on fuel imports, more than doubling to N4.56 trillion in 2021. By 2022, the figure had risen further to N7.71 trillion before slightly declining to N7.51 trillion in 2023. However, in 2024, fuel import expenditure surged to an all-time high of N15.42 trillion, marking the largest petrol import bill in Nigeria’s history.
Despite the commencement of petrol production by three major refineries in Nigeria, oil marketers have continued to import and distribute the product nationwide.
Marketers imported 2.3 billion litres of petrol between 11th September and 5th December 2024. This continued importation is in contrast to previous public statements by some groups of marketers who had expressed their intention to halt petrol imports and focus on domestic supply.
The local refineries include the 650,000-barrel-per-day Dangote Petroleum Refinery in Lagos and the 210,000-barrel-per-day Port Harcourt Refining Company in Rivers State, although PHRC currently produces at an older plant with a capacity of 60,000 barrels per day.
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Additionally, the Warri Refining and Petrochemical Company began operations in December 2024. Both PHRC and WRPC are under the management of the Nigerian National Petroleum Corporation (NNPC) Limited.
Despite improvements in domestic refining capacity, major oil marketers have continued to import refined petroleum products. In the past five months, they imported 6.38 billion litres of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel).
Independent marketers and retailers, through their various associations, have opposed this development, as the importation of these products cost approximately N6 trillion, putting additional pressure on the country’s foreign exchange reserves.
