Nigeria’s petrol imports surged in 2024, more than doubling despite increased domestic refining capacity, highlighting the country’s persistent reliance on imported fuel.
The latest foreign trade statistics report from the National Bureau of Statistics (NBS) revealed that petrol import costs rose by 105.3% to N15.42 trillion in 2024, up from N7.51 trillion in 2023.
This sharp increase came at a time when expectations were high for a decline in fuel imports, following significant investments in local refining.
Nigeria had anticipated a reduced reliance on imported fuel with the commencement of operations at the 650,000 barrels-per-day Dangote Refinery and the ongoing rehabilitation of state-owned refineries.
The Port Harcourt Refining Company (PHRC), with a total installed capacity of 210,000bpd, recently restarted operations at its old plant, which currently produces 60,000bpd.
However, available data suggests that domestic refining remains insufficient to meet national demand, necessitating continued large-scale imports.
Despite efforts to ramp up domestic refining capacity, Nigeria remains heavily reliant on imported fuel due to delays in refinery ramp-up, supply chain inefficiencies, and persistent demand-supply imbalances, among other factors.
The country’s vulnerability to foreign exchange fluctuations further complicates its ability to achieve energy self-sufficiency, as the rising cost of petrol imports continues to strain government finances and consumer purchasing power.
The persistent increase in fuel import bills affirms Nigeria’s continued vulnerability to foreign exchange volatility, global oil price fluctuations, and delays in achieving energy self-sufficiency through domestic refining.
In December 2024, the Nigeria National Petroleum Company Limited (NNPCL) announced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Company (WRPC), which was approved for rehabilitation in 2021 for $897 million.