Nigeria’s petrol imports surged in 2024, doubling to N15.42 trillion despite increased domestic refining capacity, highlighting the country’s persistent reliance on imported fuel, according to data from the National Bureau of Statistics (NBS).
The cost of petrol imports rose by 105.3 percent, from N7.51 trillion in 2023 to N15.42 trillion in 2024, a record high for the nation.
This significant increase occurred despite the commencement of operations at the 650,000-barrel-per-day Dangote Petroleum Refinery and the revival efforts at other local refineries, including the Port Harcourt Refining Company (PHRC) and the Warri Refining and Petrochemical Company (WRPC).
The steady rise in petrol imports over the past five years underscores the challenges in achieving self-sufficiency in fuel supply. In 2020, Nigeria spent N2.01 trillion on petrol imports, which more than doubled to N4.56 trillion in 2021 and further increased to N7.71 trillion in 2022.
Despite the operationalisation of major refineries, oil marketers continued to import 2.3 billion litres of petrol between September and December 2024, contradicting earlier announcements of a shift towards domestic supply.
Furthermore, major oil marketers imported 6.38 billion litres of petrol and diesel in the past five months, costing approximately N6 trillion and placing additional pressure on the country’s foreign exchange reserves.
The Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, argued that fuel importation promotes market competitiveness and helps drive down petrol prices.
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“What importation does for us is that it contributes to the market’s competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful,” Isong stated.
He emphasised the importance of local refining while highlighting that competitive pricing is maintained when locally refined fuel competes with imported fuel.
The continued high import bill highlights the need for refineries to reach full production capacity in order to reduce Nigeria’s reliance on foreign fuel.
Source:Global Financial Digest
