Between October 18 and October 20, 2023, four vessels arrived at Nigeria’s coastal ports carrying a significant quantity of Premium Motor Spirit (PMS), commonly known as petrol. According to findings from The PUNCH, approximately 123.4 million litres of petrol were delivered to seaports in a move aimed at bolstering the national fuel supply. This influx corroborated previous reports indicating that oil dealers were strategically importing petrol to complement the outputs from the Dangote Petroleum Refinery, a plant that had recently been under scrutiny for its inadequate production levels. The supply from the refinery, while pivotal, has been deemed insufficient, further triggering contentious discussions within the oil market regarding pricing and availability.
The Dangote Petroleum Refinery, situated in Lekki, was originally expected to produce around 25 million litres of petrol daily but currently reports a production capacity closer to 10 million litres. This discrepancy has raised concerns among oil marketers about meeting domestic fuel demands, prompting them to pursue supplementary imports. In a previous report from September, it was indicated that approximately 141 million litres of PMS had been imported due to rising prices, which spurred engagement in the market driven by a newly deregulated downstream oil sector. Consequently, these dynamics illustrate the challenges that have arisen from fluctuating production levels and escalating import activities.
An analysis of the shipment log reveals that the PMS landed at both Apapa port in Lagos and Calabar port in Cross River State. Specifically, the Apapa port hosted multiple vessels throughout October 18, with the first arriving early in the day and progressively followed by additional shipments later that afternoon. The vessels demonstrated a steady influx of fuel, with a total of 92,000 metric tonnes delivered—equating to approximately 123.4 million litres when converted. The vessels’ agents included West African Port Services and Peak Shipping, illustrating a collaborative effort among various stakeholders in the fuel distribution chain.
As regulatory oversight plays a critical role in ensuring product quality, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has established stringent testing protocols for imported PMS. According to George Ene-Ita, the agency’s spokesperson, all imported petrol must undergo rigorous verification processes, adhering to stipulated standards. This includes initial testing at the point of origin and additional checks upon arrival at Nigerian ports. These measures are intended to ensure compliance with national specifications and safety protocols before the products can be distributed further inland.
The recent surge in PMS imports, spurred by market dynamics and the suboptimal production performance of local refineries, illuminates the broader implications for Nigeria’s fuel supply chain. The scenario reflects not just an immediate response to a supply gap but also highlights the ongoing challenges the country faces in achieving energy independence and consistency in fuel availability. The regulatory landscape plays a crucial role in facilitating or constraining market activities, and recent developments signal a potential shift towards a more robust import strategy as local production cannot yet fulfill demand.
Overall, the volume of petrol imports underscores the pivotal role that both domestic production and international supply chains play in Nigeria’s oil market. As the situation evolves, oil marketers, regulators, and stakeholders will need to navigate the complexities arising from production uncertainties and pricing volatility while striving to secure a stable fuel supply that meets the essential needs of the nation. The balance between regulation, market dynamics, and production capabilities will be critical in shaping the future landscape of Nigeria’s oil industry as it seeks to evolve amidst these ongoing challenges.
