Nigeria’s fuel import rises to 2.3bn litres despite Dangote, Port Harcourt refineries

Nigeria’s importation of Premium Motor Spirit (PMS), commonly known as petrol, has surged to 2.3 billion litres between September 11 and December 5, 2024, despite domestic production by the Dangote Refinery and the rehabilitated Port Harcourt Refinery.

This revelation comes from a document by the Nigerian Ports Authority (NPA), highlighting the persistence of fuel importation despite measures to curb it.

The Dangote Refinery, with a capacity of 650,000 barrels per day, began producing and distributing PMS on September 15, 2024. Similarly, the Port Harcourt Refinery resumed operations and commenced truckouts on November 26, 2024.

However, data from the NPA reveals that fuel imports have not subsided. In the past three days alone, 52,000 metric tonnes—equivalent to 68.74 million litres—of petrol were imported through three major ports in Nigeria.

This ongoing reliance on imported fuel contradicts the Federal Government’s October 11 announcement that marketers could directly lift petrol from Dangote Refinery, ending the Nigerian National Petroleum Company Limited (NNPCL)’s exclusive off-take arrangement.

Agreements with the Independent Petroleum Marketers Association of Nigeria (IPMAN) were also intended to facilitate the direct sale of petrol.

Industry experts have weighed in on the reasons behind continued fuel imports. Dr. Adeola Ogunleye, an energy economist, noted that, “While the operational ramp-up of domestic refineries is commendable, challenges like logistics bottlenecks, pipeline security, and refining capacity utilization continue to hinder self-sufficiency in fuel supply.”

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Ogunleye suggested that without robust infrastructure to distribute domestically refined petrol efficiently, the reliance on imports will persist.

Bashir Lawal, an oil and gas analyst, emphasized policy inconsistencies as a critical barrier.

“The government needs to address regulatory uncertainties and ensure that independent marketers have full access to domestically refined petrol at competitive prices. Failure to align incentives with market realities undermines efforts to achieve energy independence.”

Stakeholders have called for a more coordinated approach to maximize the benefits of the Dangote and Port Harcourt refineries. IPMAN President Chinedu Okoronkwo urged the government to resolve delays in granting access to refineries and streamline processes for independent marketers.

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“If marketers can seamlessly lift products from local refineries, imports will reduce significantly,” he stated.

The persistence of fuel imports raises questions about Nigeria’s energy policies and infrastructure readiness, despite progress in refining capacity.

Analysts agree that achieving fuel self-sufficiency will require enhanced regulatory frameworks, efficient distribution systems, and unwavering political commitment.