Nigeria’s petrol import bill surged dramatically in 2024, more than doubling despite efforts to boost domestic refining.
Naija News understands that this highlights the country’s continued dependence on imported fuel, even as local refineries increase their capacity.
According to the latest foreign trade statistics report from the National Bureau of Statistics (NBS), the cost of petrol imports rose by 105.3% to ₦15.42 trillion in 2024, up from ₦7.51 trillion in 2023.
This sharp increase comes at a time when expectations were high for a reduction in fuel imports due to significant investments in local refining.
The start of operations at the 650,000-barrel-per-day Dangote Petroleum Refinery and the ongoing rehabilitation of other refineries were expected to ease Nigeria’s reliance on imported fuel.
However, reports indicate that these refineries are yet to reach full production capacity to meet the country’s fuel demand.
Over the past five years, Nigeria’s fuel import expenditure has consistently risen. In 2020, the country spent ₦2.01tn on petrol imports, which more than doubled to ₦4.56tn in 2021.
By 2022, the figure had increased to ₦7.71tn before slightly declining to ₦7.51tn in 2023. However, in 2024, fuel import costs soared to an all-time high of ₦15.42tn—the highest in Nigeria’s history.
Earlier reports by The PUNCH revealed that despite the commencement of petrol production by three major refineries, oil marketers have continued importing and distributing fuel nationwide.
This ongoing importation contradicts previous announcements by some marketers who had stated their intention to shift focus to domestic supply.
The key local refineries include the Dangote Petroleum Refinery in Lagos, with a capacity of 650,000 barrels per day, and the Port Harcourt Refining Company (PHRC) in Rivers State, which has a total capacity of 210,000 barrels per day but is currently producing from its old 60,000bpd plant.
Additionally, the Warri Refining and Petrochemical Company resumed operations in December 2024. Both PHRC and WRPC are managed by the Nigerian National Petroleum Company Limited.
Despite the improvements in domestic refining capacity, The PUNCH reports that major oil marketers have continued importing refined petroleum products. In the past five months alone, they brought in 6.38 billion litres of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel).
Independent marketers and retailers, through their respective associations, have opposed this trend, arguing that the cost of these imports—approximately ₦6tn—has added pressure to Nigeria’s foreign exchange reserves.
Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, defended the continued importation, stating that it promotes competition and helps lower fuel prices.
“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.
“We want local refining. Let’s be clear. We want local refining. 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 asserted.
