Petroleum marketers explain persisting petrol imports amid local refinery operations

Despite the operational capacity of the Dangote Refinery and other local refineries, petrol imports into Nigeria have continued, raising questions about the country’s fuel supply dynamics.

Industry stakeholders have attributed this to fears of market competition, pricing strategies, and inadequate local production capacity.

Speaking on Monday, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association, and Tunji Oyebanji, former Chairman of the Major Marketers Association of Nigeria, explained that the importation of petrol persists due to concerns over monopolization and fluctuating pricing models in the sector.

This discussion comes as the National Bureau of Statistics (NBS) reported a 105 percent increase in petrol imports, reaching N15.4 trillion by the end of 2024. In February 2025 alone, fuel imports surged to N930 billion, sparking further concerns in the downstream sector.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) earlier reported that the Dangote Refinery, along with the Port Harcourt and Warri refineries, only met 50 percent of the country’s petrol consumption needs in February 2025.

However, Dangote Refinery has countered this claim, insisting that its $20 billion facility has the capacity to meet 100 percent of Nigeria’s fuel demand.

Amid these conflicting reports, Nigerians are left uncertain about the true state of the country’s petroleum supply. The Nigerian National Petroleum Company Limited (NNPCL) has stated that it has not imported petrol in 2025, adding to the debate.

READ ALSO: NNPCL confirms ongoing review of Naira-for-Crude contract with Dangote Refinery

Gillis-Harry emphasized that petroleum retailers source fuel from multiple suppliers, including the Dangote Refinery, NNPC, and foreign imports. He warned against a monopolized market, stressing the importance of price stability and competition.

“Retailers are not avoiding Dangote Refinery; we buy from all refineries, but we advocate for full market liberalization to prevent a monopolized downstream sector,” he stated.

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He also criticized the refinery for unpredictable price adjustments, explaining that sudden price reductions without consultations disrupt retailers’ operations. “We cannot purchase fuel at N889 per liter and wake up to see the price reduced to N825 overnight. That’s unfair,” he noted.

Oyebanji echoed similar sentiments, arguing that local refineries are still not meeting the total domestic demand. “If local refineries produced enough and offered competitive prices, no right-thinking businessman would opt for importation,” he said.

He also questioned the focus on outdated 2024 fuel import data in the media, suggesting that the figures may be used to push a particular agenda. “The reality is that some importation is allowed to prevent shortages, but suggesting that imports are increasing significantly is misleading,” Oyebanji explained.

Recent price adjustments by both NNPC and Dangote Refinery have sparked a price war in the sector. In early 2025, petrol prices ranged between N860 and N880 per liter, but fluctuations have seen Nigerians purchasing fuel between N860 and N970 per liter nationwide.

Dangote Refinery, which began petrol supply on October 15, 2024, has been a major player in Nigeria’s fuel sector. Additionally, NNPC restarted production at the Port Harcourt and Warri refineries in November and December 2024, respectively.

However, with continued importation and pricing concerns, stakeholders remain divided on the future of Nigeria’s petroleum supply chain.