Nigeria’s Fuel Imports Surge to 2.3 billion Litres Despite New Refinery Operations
Despite the commencement of production at the Dangote and Port Harcourt refineries, Nigeria’s importation of Premium Motor Spirit (PMS), or petrol, has surged to 2.3 billion litres between September 11 and December 5, 2024.
This increase comes even after both the Dangote Refinery, with a production capacity of 650,000 barrels per day, and the Port Harcourt refinery began outputting fuel in mid-September and late November, respectively.
The continued importation contradicts previous commitments from both oil marketers and the Nigerian National Petroleum Company Limited (NNPC) to phase out imports and meet domestic fuel demands with local production.
Recent data from the Nigerian Ports Authority (NPA) shows that fuel imports have not only persisted but intensified. In just the past three days, a total of 52,000 metric tonnes of petrol, equivalent to approximately 68.74 million litres, were brought into the country.
This fuel was delivered via three vessels that docked at key ports in Lagos and Calabar, further emphasizing the ongoing reliance on imports. The shipments arrived at the Apapa Port, Tin Can Port, and Calabar Port, despite the efforts to ramp up domestic production.
The fuel importation process remains active, with ships like the “Binta Saleh” and “Shamal” bringing significant quantities of petrol into the country. On December 3, 2024, the Binta Saleh ship unloaded 12,000 metric tonnes (15.86 million litres) at the Apapa port, while another vessel, Shamal, delivered 20,000 metric tonnes (26.44 million litres) through Tin Can Port on December 4. A third vessel, Watson, is scheduled to bring in 20,000 metric tonnes of petrol at the Calabar port on December 5. These ongoing imports contradict earlier reports of a direct sale agreement between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Dangote Refinery, which was intended to reduce the reliance on foreign fuel.
The situation also follows the Federal Government’s announcement in October 2024, which allowed marketers to directly source petrol from Dangote Refinery. This move was designed to end the monopoly of the NNPC as the sole off-taker of the refinery’s petrol, allowing private marketers to play a more active role in the distribution process. However, the fact that imports are still occurring suggests challenges in meeting the country’s fuel demand purely from domestic production, even with the newly operational refineries.
