Despite the recent commencement of petrol production by two major refineries in Nigeria, oil marketers have continued to import significant quantities of the product into the country. Data obtained on Wednesday revealed that marketers imported 2.3 billion litres of petrol between September 11 and December 5, 2024.
This ongoing importation contrasts with earlier announcements by marketers who had pledged to cease imports and prioritize domestic supply, following the start of operations at the Dangote Petroleum Refinery in Lagos and the Port Harcourt Refining Company (PHRC) in Rivers State. The Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), began petrol sales in September, while PHRC, operating an older facility with a capacity of 60,000bpd, started production last Tuesday.
Reports indicate that in just the past three days, 52,000 metric tonnes of petrol—equivalent to approximately 68.74 million litres—were imported into the country. This included three shipments:
The vessel Binta Saleh delivered 12,000 metric tonnes (15.86 million litres) of petrol at Apapa Port in Lagos on December 3; the ship Shamal brought in 20,000 metric tonnes (26.44 million litres) of petrol through Tin Can Port in Lagos on December 4 and another vessel, Watson was scheduled to deliver 20,000 metric tonnes (26.44 million litres) of petrol at Calabar Port in Cross River State on December 5.
While the Dangote Refinery and PHRC have boosted local refining capacity, challenges remain. The Nigerian National Petroleum Company Limited (NNPCL) was initially the sole off-taker from Dangote Refinery, limiting distribution. However, in October 2024, the federal government allowed independent marketers to directly negotiate with the refinery, leading to agreements such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) securing a product offtake deal.
Despite this, domestic production has not met the country’s demand, prompting continued imports. For instance, between October and early December, over two billion litres of petrol were imported, amounting to $1.8 billion (N3 trillion).
Oil marketers initially pledged to suspend petrol imports for 180 days, citing confidence in local production. Last week, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), announced plans to rely solely on domestic supplies. Similarly, major marketers had declared an import suspension after sourcing 148 million litres of petrol from Dangote Refinery over the past 10 weeks.
However, fresh findings suggest a different reality, with marketers continuing imports to bridge supply gaps. Documents from the Nigerian Ports Authority show consistent discharge of imported petrol at major ports, including Lagos, Warri, Port Harcourt, and Calabar.
The reliance on imported petrol underscores lingering issues in Nigeria’s energy sector, even as domestic refining capacity improves. Efforts by NNPCL and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to eliminate petrol imports remain ongoing but face significant hurdles.
Stakeholders continue discussions on achieving self-sufficiency in petrol supply, with many calling for ramped-up production at local refineries. Until these efforts bear fruit, Nigeria’s dependence on imported petrol is unlikely to abate.
