Petrol imports jump 105% to N15tn – NBS report
Nigeria's petrol imports experienced a significant increase in 2024, doubling in volume despite enhancements in domestic refining capabilities, underscoring the nation's ongoing dependence on imported fuel, as indicated by recent findings.
According to the latest foreign trade statistics report from the National Bureau of Statistics, the expenditure on petrol imports escalated by 105.3 percent, reaching N15.42 trillion in 2024, compared to N7.51 trillion in 2023.
This notable rise in fuel import costs occurred amidst optimistic expectations for a reduction in foreign supply reliance, following substantial investments in local refining infrastructure.
The initiation of operations at the Dangote Petroleum Refinery, which has a capacity of 650,000 barrels per day, along with ongoing revitalization efforts at other local refineries, was anticipated to diminish import dependency.
Nevertheless, current data indicates that these refineries have not yet achieved full production capacity necessary to satisfy domestic demand.
Over the past five years, Nigeria's petrol import expenses have consistently increased. In 2020, the country allocated N2.01 trillion for fuel imports, which more than doubled to N4.56 trillion in 2021.
By 2022, this amount rose further to N7.71 trillion before experiencing a slight decrease to N7.51 trillion in 2023. However, in 2024, fuel import costs surged to an unprecedented N15.42 trillion, marking the highest petrol import expenditure in Nigeria's history.
Despite the initiation of petrol production by three major refineries in Nigeria, oil marketers have continued to import and distribute the product across the nation.
Marketers imported 2.3 billion liters of petrol from September 11 to December 5, 2024. This ongoing importation contradicts a prior public statement made by a group of marketers who had expressed their intention to cease petrol imports and concentrate on domestic supply.
The local refining capabilities include the Dangote Petroleum Refinery in Lagos, which has a capacity of 650,000 barrels per day, and the Port Harcourt Refining Company in Rivers State, which has a capacity of 210,000 barrels per day. Currently, the Port Harcourt Refining Company operates at a reduced capacity of 60,000 barrels per day using its older facilities.
Additionally, the Warri Refining and Petrochemical Company began its operations in December 2024. Both the Port Harcourt and Warri refineries are managed by the Nigerian National Petroleum Company Limited.
According to reports from The PUNCH, despite the enhancement of domestic refining capabilities in Nigeria, major oil marketers have persisted in importing refined petroleum products, having brought in 6.38 billion liters of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) over the last five months.
Independent marketers and retailers, represented by their various associations, have opposed this trend, noting that the importation of these products has cost approximately N6 trillion, thereby exerting additional pressure on the country's foreign exchange reserves.
Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, previously stated that importation fosters competition, which in turn helps to lower the price of petrol.
In his remarks on fuel importation, he stated, “Importation enhances market competitiveness. The price fluctuations and competitive environment you are experiencing are direct outcomes of importation. It serves a beneficial purpose.
“We advocate for local refining. Let us be unequivocal. We desire local refining. The key to maintaining the most competitive prices is ensuring that locally refined fuel prices are in competition with imported prices. This competition is what keeps our pump prices as low as possible,” asserted the leader of MEMAN.
