Despite two major refineries in Nigeria starting petrol production in the last three months, oil marketers are still importing large quantities of fuel. Between September 11 and December 5, 2024, marketers brought in 2.3 billion litres of petrol.
Earlier, some marketers had announced plans to stop imports and rely on local production. However, they have continued imports due to various challenges.
The refineries involved include the 650,000-barrel-per-day Dangote Refinery in Lagos and the Port Harcourt Refinery, which recently restarted production. Dangote’s refinery began selling petrol in September, and the Port Harcourt plant’s smaller unit (60,000 barrels per day) started operating last week.
In just the past three days, 52,000 metric tonnes of petrol (about 68.74 million litres) were imported, showing that imports remain essential despite local production efforts.
Why Fuel Imports Continue
Nigeria has long depended on imported petrol, even after local production increased. The issue lies in the high cost of locally refined fuel and insufficient output. Initially, the Nigerian National Petroleum Company (NNPC) was the only buyer from Dangote’s refinery. In October 2024, the government allowed independent marketers to buy directly from Dangote, leading to agreements between marketers and the refinery.
Major oil marketers had promised to focus on local supply and pause imports for 180 days. However, documents from the Nigerian Ports Authority reveal ongoing imports, with ships delivering millions of litres of fuel to Lagos and Calabar ports.
The Bigger Picture
Despite efforts to boost local production, marketers argue that importation is still necessary to meet demand. Discussions are ongoing between stakeholders to reduce dependence on imports, but achieving this will take time.
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