Nigeria has announced plans to create a national fuel reserve this year, aiming to protect the country from disruptions in global supply and ensure a more stable energy system.
The announcement was made by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), during a press briefing in Abuja.
A step toward energy security
Ahmed said the reserve would help Nigeria respond better to sudden changes in the global market. He explained that while Nigeria currently keeps enough petrol to last about 30 days, the planned national stockpile will be bigger and longer-lasting.
This move is required by Nigeria’s oil law and is similar to the Strategic Petroleum Reserve used in the United States. The plan also involves licensing private depots that can store fuel for longer periods.
Local production cutting down imports
Nigeria, despite its oil wealth, has often faced petrol shortages. But things are starting to change. The Dangote Refinery, which began operations in September 2024, along with five smaller refineries, has helped reduce the country’s reliance on imported fuel.
Petrol imports have dropped from 50.8 million litres per day in September to 28.7 million litres per day as of last month.
Refinery growth shows promise
Current data from the NMDPRA shows that Nigeria’s refineries could process up to 770,500 barrels of oil per day by mid-year. This growing capacity could eventually eliminate the need for petrol imports altogether.
Ahmed said the new reserve, combined with increased local production, will help Nigeria avoid fuel supply problems and support long-term energy stability.