Fuel Imports Hit 2.3 Billion Litres Despite Local Refinery Operations

Despite recent operations by two major refineries in Nigeria, oil marketers have continued to import petrol to meet national demand. Between September 11 and December 5, 2024, a staggering 2.3 billion litres of petrol were imported, highlighting the ongoing reliance on foreign supply even as local production ramps up.

The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day (bpd), began selling petrol in September. Similarly, the Port Harcourt Refining Company (PHRC) resumed operations on its Area 5 facility last week, adding a capacity of 60,000bpd. Yet, data from the past three days shows that 52,000 metric tonnes of petrol, equivalent to 68.74 million litres, were brought into the country via three ports: Apapa, Tin Can, and Calabar.

For decades, Nigeria has depended heavily on fuel imports due to insufficient local refining capacity. This trend continued after the Dangote refinery commenced operations, partly because of pricing concerns and limited output. Initially, the Nigerian National Petroleum Company Limited (NNPCL) acted as the sole offtaker from the Dangote refinery. However, following negotiations, the Federal Government announced in October that marketers could purchase fuel directly from the refinery. Agreements were subsequently signed with associations such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

Amid this progress, major marketers and associations, including PETROAN, announced plans to halt imports for 180 days to prioritize domestic supply. PETROAN reported sourcing 148 million litres from Dangote in the last 10 weeks. However, recent port activity contradicts these promises, suggesting ongoing importation efforts.

Documents obtained from the Nigerian Ports Authority reveal three recent shipments: the Binta Saleh delivered 15.86 million litres at Apapa on December 3; the Shamal offloaded 26.44 million litres at Tin Can on December 4; and the Watson is scheduled to bring 26.44 million litres to Calabar today. These developments cast doubt on recent discussions led by NNPCL to eliminate fuel imports entirely.

Between October and November, NNPCL and other marketers imported over two billion litres of petrol, along with significant quantities of diesel and jet fuel, amounting to nearly ₦3 trillion ($1.8 billion). Despite substantial local production efforts, the country’s reliance on imports remains entrenched, leaving questions about the effectiveness of recent policy shifts.