Nigeria’s Ongoing Petrol Imports Remain High Despite Dangote and Port Harcourt Refineries’ Operations
Despite the commencement of operations at the Dangote and Port Harcourt refineries, Nigeria’s petrol imports have reached an alarming 2.3 billion litres between September 11 and December 5, 2024. This data, released by the Nigerian Ports Authority (NPA), highlights the continued reliance on imported fuel, even as the country has made strides toward achieving self-sufficiency in refined petroleum products.
Both the Dangote Refinery, with a substantial daily production capacity of 650,000 barrels, and the Port Harcourt Refinery, which began producing and distributing Premium Motor Spirit (PMS) in mid and late September and November 2024, respectively, were expected to significantly reduce the nation’s dependence on fuel imports. However, the recent data from NPA reveals that despite these developments, fuel imports have continued unabated.
In fact, the figures paint a concerning picture: in just the past three days, Nigeria imported 52,000 metric tonnes of petrol, equivalent to approximately 68.74 million litres. These shipments arrived at several key ports, including Lagos’ Apapa Port, Tin Can Port, and the Calabar Port in Cross River State.
A notable shipment on December 3, 2024, saw the vessel Binta Saleh deliver 15.86 million litres of petrol to Apapa Port. This shipment was handled by Blue Seas Maritime at the Bulk Oil Plant terminal. The next day, the Shamal vessel arrived at Tin Can Port with an even larger shipment of 26.44 million litres, managed by Peak Shipping Agency. Additionally, the Watson vessel is expected to deliver another 26.44 million litres to Calabar Port, further contributing to the steady influx of imported fuel into the country.
These continued imports come despite significant policy changes aimed at reducing reliance on foreign petrol. In October 2024, the Nigerian government implemented a major policy shift, enabling marketers to directly source petrol from the Dangote Refinery. This was a pivotal change, as it ended the Nigerian National Petroleum Company Limited’s (NNPC) exclusive control over petrol distribution. Following the policy shift, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also reached an agreement with Dangote Refinery for direct sales, signaling a move toward greater domestic participation in the distribution of refined petroleum.
Yet, the fact that Nigeria continues to import large quantities of petrol even with these new policies and refinery operations raises significant questions about the effectiveness and output of the country’s domestic refining capacity. The persistence of fuel imports underscores the challenges Nigeria faces in its efforts to reduce dependence on foreign petroleum products and develop a robust, self-sustaining refining sector.
The continued flow of imported fuel also highlights concerns about the adequacy of refining infrastructure and the pace of progress in the country’s efforts to modernize and expand its refinery capacity. While the Dangote Refinery holds considerable promise with its large-scale production potential, and the Port Harcourt Refinery is expected to play a key role in meeting national demand, these refineries are still in their early operational stages and have not yet fully addressed the country’s fuel needs.
As Nigeria strives to achieve energy security and reduce its reliance on imported fuel, there is a growing need for more robust investments in refining infrastructure, greater operational efficiency, and faster progress in ramping up production capacity at both public and private refineries. Until these challenges are fully addressed, the country’s dependence on imported petrol is likely to persist, impacting the overall goal of achieving self-sufficiency in the energy sector.
