Nigeria’s petrol imports soared in 2024, more than doubling despite increased local refining capacity, underscoring the nation’s ongoing reliance on foreign fuel supplies.
The latest foreign trade statistics report from the National Bureau of Statistics (NBS) indicates that petrol import costs rose by 105.3 per cent to N15.42 trillion in 2024, compared to N7.51 trillion in 2023.
This sharp escalation came at a time when many had expected a decline in fuel imports, following substantial investments in domestic refining infrastructure.
Nigeria’s expenditure on fuel imports has continued to increase over the past five years, reflecting growing dependence on foreign supply and currency devaluation. In 2020, the country spent N2.01 trillion on petrol imports.
By 2021, costs had surged by 126.9 per cent to N4.56 trillion, influenced by global price fluctuations and greater import reliance. In 2022, import expenses climbed further by 69.1 per cent to N7.71 trillion, largely due to increasing crude oil prices and the nation’s inability to refine a substantial portion of its fuel domestically.
In 2023, there was a slight dip of 2.6 per cent, with total import expenditure amounting to N7.51 trillion, possibly reflecting forex adjustments and a temporary easing of global oil prices.
However, in 2024, petrol import costs surged by 105.3 per cent to N15.42 trillion, marking the highest figure on record. This dramatic escalation is largely attributed to the 40.9 per cent depreciation of the naira, which significantly inflated import costs in local currency terms, even though dollar-denominated prices remained relatively stable.
Nigeria had anticipated a reduction in fuel imports with the launch of the 650,000 barrels-per-day Dangote Refinery and the ongoing rehabilitation of state-owned refineries.
The Port Harcourt Refining Company (PHRC), which has a total installed capacity of 210,000bpd, recently restarted operations at its old plant, producing 60,000bpd. However, available data suggests that domestic refining capacity remains inadequate, necessitating the continued importation of large volumes of petrol to meet national demand.
Despite ongoing efforts to scale up domestic refining, Nigeria remains heavily dependent on imported fuel due to delays in refinery ramp-up, inefficiencies in the supply chain, and persistent demand-supply imbalances.
Also, the country’s exposure to foreign exchange fluctuations exacerbates the problem, making it difficult to achieve energy self-sufficiency.
The rising cost of fuel imports continues to burden government finances and erode consumer purchasing power. The consistent rise in import bills underscores Nigeria’s ongoing vulnerability to currency volatility, fluctuations in global oil prices, and setbacks in achieving energy independence through local refining.
