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 of the National Bureau of Statistics showed that the cost of petrol imports rose by 105.3 per cent to N15.42tn in 2024 from the N7.51tn recorded in 2023.
This sharp increase in fuel import expenditure came at a time when expectations were high for a decline in reliance on foreign supply following significant investments in local refining.
The commencement of operations at the 650,000-barrel-per-day capacity Dangote Petroleum Refinery last year and ongoing revival efforts at the other local refineries were expected to reduce import dependence.
However, existing data suggests that these refineries have yet to reach full production capacity to meet domestic demand.
Over the past five years, Nigeria’s petrol import bill has steadily risen. In 2020, the country spent N2.01tn on fuel imports, more than doubling to N4.56tn in 2021.
By 2022, the figure further increased to N7.71tn before slightly declining to N7.51tn in 2023. However, in 2024, fuel import expenditure surged to an all-time high of N15.42tn, marking the largest petrol import bill in Nigeria’s history.
It was earlier reported that despite the commencement of petrol production by three major refineries in Nigeria, oil marketers had continued to import and distribute the product nationwide.
Marketers imported 2.3 billion litres of petrol between September 11 and December 5, 2024. The continued importation of petrol is contrary to a public announcement by some group of marketers who earlier stated their intention to halt petrol imports and focus on domestic supply.
The local refineries are the 650,000 barrel per day capacity Dangote Petroleum Refinery located in Lagos and the 210,000bpd capacity Port Harcourt Refining Company in Rivers State. PHRC currently produces from its old plant with a capacity of 60,000bpd.
Also, the Warri Refining and Petrochemical Company commenced operations in December 2024. PHRC and WRPC are both under the management of the Nigerian National Petroleum Company Limited.
