Nigeria’s petroleum product importation conundrum continues despite increased domestic refining capacity. While the nation boasts a combined refining capacity theoretically sufficient to meet domestic demand, major oil marketers persist in importing substantial volumes of petrol and diesel. Over a five-month period, these marketers imported a staggering 6.38 billion litres of these crucial fuels, a move that has sparked considerable debate and concern among industry stakeholders. Independent marketers and retailers vehemently oppose this continued reliance on imports, citing the massive financial burden it places on the country’s foreign exchange reserves, estimated at a staggering N6 trillion for the analyzed period. This expenditure, they argue, undermines efforts to bolster local refining capacity and strengthen the nation’s economy.
A detailed analysis of tanker vessel movements into Nigerian ports revealed the extent of this import dependency. Between October 2024 and November 2025, over 5.01 billion litres of petrol and 1.37 billion litres of diesel flowed into the country, primarily through the Apapa and Tin Can ports in Lagos, followed by Port Harcourt, Calabar, and Warri. With average prices of N900/litre for petrol and N1,100/litre for diesel, the estimated expenditure on these imports reaches a staggering N6.02 trillion. This continuous importation occurs despite significant progress in domestic refining capacity, including the reopening of the Port Harcourt and Warri refineries and the operational commencement of the Dangote refinery, Nigeria’s largest refining facility. These developments, which promised self-sufficiency in fuel production, appear to have had a limited impact on curbing the importation trend.
The irony of this situation is that Nigeria possesses the refining infrastructure to meet its domestic fuel needs. The Nigerian Mid-stream and Downstream Regulatory Authority (NMDPRA) confirms a daily refining capacity of 985,000 barrels per day, exceeding the estimated national consumption of 50 million litres per day. The relaunch of the Port Harcourt refinery in November 2024, followed by the Warri refinery, signaled a renewed focus on domestic production. The Port Harcourt facility, with its combined capacity of 210,000 barrels per day, along with the Warri refinery’s production of kerosene, diesel, and naphtha, significantly boosted the nation’s refining potential. Coupled with the commencement of operations at the Dangote refinery, with its massive 650,000 bpd capacity, the push for self-sufficiency gained considerable momentum. Despite these positive strides, dependence on foreign imports persists.
The continued importation of refined products has drawn sharp criticism from independent marketers and retailers. Associations like the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) argue that the importation not only drains valuable foreign exchange but also stifles the growth of local refineries and undermines the drive for self-sufficiency. They contend that focusing on domestic production would create jobs, strengthen the naira, and boost the national economy. The substantial amount spent on imports could be channeled into supporting local refineries, ensuring their optimal operation and expansion. The debate centres on balancing the need for competitive pricing with the imperative of national self-reliance in fuel production.
A deeper examination of import data reveals a complex picture. While the NNPC claims to have ceased fuel imports in 2025, relying solely on local production, other major marketers continue to bring in significant volumes of petrol and diesel. The list of importers includes prominent players like BOVAS, Eternal Oil, AA Rano, Fatgbems, and several others. This continued importation raises questions about the efficacy of the push for local refining and the factors driving the persistent reliance on foreign sources. The monthly import figures from October 2024 to February 2025 show fluctuations, with a general downward trend, possibly reflecting increased local production. However, the February 2025 figures indicate a substantial import volume of 701.75 million litres of petrol and 265.88 million litres of diesel, suggesting ongoing reliance on imports.
The conflicting perspectives of stakeholders further complicate the issue. Independent marketers advocate for prioritizing local production and halting imports, citing economic and strategic benefits. They view the continued importation as a step backward, hindering the potential of local refineries and the nation’s economic growth. On the other hand, the Major Energies Marketers Association of Nigeria (MEMAN) argues that importation fosters competition and keeps fuel prices in check. They suggest that the interplay between imported and locally refined fuel prices benefits consumers. This divergence of opinions highlights the balancing act required between promoting local industry and ensuring competitive market dynamics. The debate underscores the need for a comprehensive national policy that reconciles these seemingly conflicting interests and charts a clear path toward sustainable fuel security for Nigeria.
