Nigeria’s petrol imports have doubled in 2024 despite increased domestic refining capacity, highlighting the nation’s continued dependence on foreign fuel.
According to the latest foreign trade statistics report from the National Bureau of Statistics, Nigeria’s petrol import costs surged by 105.3% in 2024, reaching N15.42 trillion, compared to N7.51 trillion in 2023.This sharp rise in fuel import expenditure comes despite significant investments in domestic refining, which had raised expectations of a reduced dependence on foreign supply.
The launch of operations at the 650,000-barrel-per-day Dangote Petroleum Refinery last year, along with ongoing efforts to revive other local refineries, was expected to reduce Nigeria’s reliance on fuel imports. However, current data indicates that these refineries have yet to achieve full production capacity, leaving the country dependent on imported petrol to meet domestic demand.
The Port Harcourt Refining Company (PHRC), with an installed capacity of 210,000 barrels per day, recently resumed operations at its old plant, currently producing 60,000 barrels per day. However, available data suggests that domestic refining remains insufficient to meet national demand, making large-scale imports necessary.
Despite ongoing efforts to boost local refining capacity, Nigeria continues to rely heavily on imported fuel due to refinery delays, supply chain inefficiencies, and persistent demand-supply gaps. Additionally, the country’s dependence on imported petrol leaves it vulnerable to foreign exchange fluctuations, increasing the financial strain on both the government and consumers.
The rising cost of fuel imports underscores Nigeria’s ongoing exposure to global oil price volatility and delays in achieving energy self-sufficiency, highlighting the urgent need to accelerate refinery expansion and efficiency.
Over the past five years, Nigeria’s petroleum import bill has witnessed a consistent rise, reflecting growing import dependence and the impact of global price fluctuations. In 2020, the country spent N2.01 trillion on fuel imports, more than doubling to N4.56 trillion in 2021. The upward trend persisted in 2022, with import costs surging by 69.1% to N7.71 trillion, largely driven by rising crude oil prices and the country’s continued inability to refine a substantial portion of its fuel needs locally.
In 2023, petrol import expenditure saw a slight decline of 2.6% to N7.51 trillion, marking a temporary relief after years of steady increases. This moderation was likely influenced by factors such as foreign exchange adjustments and fluctuations in global oil prices.
However, 2024 saw a dramatic 105.3% spike, pushing fuel import costs to a record N15.42 trillion. This surge is largely attributed to the sharp 40.9% depreciation of the naira, which significantly inflated import costs in local currency terms, even if dollar-denominated prices remained relatively stable.
Despite the commencement of petrol production by three major refineries in Nigeria, oil marketers have continued to import and distribute the product nationwide. This sustained reliance on imports contradicts earlier statements from some marketer groups, who had publicly declared their intention to shift focus toward domestic supply.
