Nigeria’s petrol imports skyrocketed by 105.3% in 2024, reaching an all-time high of N15.42 trillion, up from N7.51 trillion in 2023. This surge, reported by the National Bureau of Statistics (NBS), comes despite efforts to boost domestic refining capacity and rehabilitate state-owned refineries.
The country’s petrol import bill has been on a steady rise, from N2.01 trillion in 2020 to N4.56 trillion in 2021, and then to N7.71 trillion in 2022, before dipping slightly to N7.51 trillion in 2023. However, the 40.9% depreciation of the naira in 2024 led to a significant increase in import costs.
Despite the restart of the Warri Refinery and Petrochemical Company (WRPC) and the Port Harcourt Refining Company (PHRC), local production remains insufficient to meet demand, forcing the country to rely heavily on imports. Supply chain inefficiencies, demand-supply imbalances, and foreign exchange fluctuations have further exacerbated the issue.
The Major Energies Marketers Association of Nigeria (MEMAN) has expressed support for continued importation, citing its benefits in fostering competition and stabilising prices. According to Clement Isong, Executive Secretary of MEMAN, “What importation does for us is that it contributes to market competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful.”
Isong emphasised that MEMAN is not opposed to local refining but believes that competition from imported fuel prices helps keep prices at the pump low. “What ensures that we have the most competitive price is that locally refined fuel prices have to compete with imported prices. That is what keeps our prices at the pump as low as possible,” he stated.
The Nigerian government has been working to increase domestic refining capacity with the aim of reducing reliance on imports. The restart of the Warri Refinery and Petrochemical Company (WRPC) and the Port Harcourt Refining Company (PHRC) are seen as significant steps towards achieving this goal.
However, experts have warned that the country’s refining capacity remains insufficient to meet demand and that imports will continue to play a significant role in meeting the country’s fuel needs.
The rising cost of gasoline imports has also raised concerns about the impact on government finances and consumer purchasing power. The Nigerian government has been working to diversify its economy and reduce its reliance on oil exports, but the country remains heavily dependent on petroleum products.
As the country continues to grapple with the challenges of meeting its fuel needs, the debate over the role of imports versus local refining is likely to continue. While some argue that imports are necessary to meet demand and keep prices competitive, others believe that the country should prioritise domestic refining and reduce its reliance on foreign suppliers.
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