Nigeria, an oil-producing giant, remains tethered to imported fuel, bringing in over two billion litres of petrol between October 1 and November 11, 2024. This surge, led by the Nigerian National Petroleum Company Limited (NNPCL) and various private marketers, comes despite high hopes that domestic refineries would curb imports. The ongoing reliance on foreign refined products has sparked contention between import-dependent marketers and domestic refiners who want the government to halt import licenses for refined petroleum.
While marketers assert that deregulation allows them to source from any market offering competitive prices, domestic refiners argue that unchecked imports undermine efforts to build a self-reliant industry. The abundance of imports, they claim, leaves Nigeria vulnerable to foreign fuel suppliers and delays the growth of local refining capacity.
In an attempt to explain the situation, one major oil marketer defended the current dynamics: “Deregulation is in full swing and competition is the order of the day,” he stated, noting that while prices remain high—at around N1,070 per litre—costs have started to ease slightly. He added, however, that Nigerians should abandon the expectation of a consistent price, as market-driven fluctuations are now the norm.
This persistent import pattern has continued despite Nigeria’s ambitions for change, illustrated by the Dangote refinery’s commencement of petrol production in September. The refinery, touted as a cornerstone of Nigeria’s energy independence, has supplied hundreds of millions of litres to the local market, yet Nigeria’s import needs remain unfulfilled, with tankers bringing in fuel almost daily.
Data shows that over 1.5 million metric tonnes of PMS (petrol), 414,000 metric tonnes of diesel, and 13,500 metric tonnes of jet fuel were imported in just 42 days—amounting to about N3 trillion or $1.8 billion. The Organisation of Petroleum Exporting Countries reported a noticeable spike in imports in October, underscoring Nigeria’s enduring dependence on foreign fuel.
President Bola Tinubu has voiced hopes that selling crude in naira and removing subsidies would stabilize the sector. In a recent meeting with stakeholders, he insisted that “the government will not return to the old ways of doing things,” aiming instead to increase Nigeria’s naira-based crude revenue to N700 billion monthly. Tinubu emphasized that a stable domestic supply would be crucial to ending Nigeria’s import dependency.
Aliko Dangote, the head of the Dangote Group, shared Tinubu’s vision, reporting that his refinery currently holds over 500 million litres in reserve. However, domestic refiners remain frustrated. The Crude Oil Refinery Owners Association of Nigeria (CORAN) has repeatedly urged the government to restrict import licenses, arguing that some international players are using Nigeria as a market for substandard fuel, rejected in other regions.
Eche Idoko, CORAN’s Publicity Secretary, reinforced the call for “backward integration”—a policy of prioritizing domestic production over imports. “Products made locally should no longer be imported, except in cases of shortfall,” he insisted. CORAN’s stance underscores a crucial point: as long as Nigeria relies on imports, foreign markets will continue to dominate a sector that could instead be an engine of national growth.
For Nigeria, a shift to locally refined fuel isn’t just an economic goal; it’s a question of national resilience. Achieving it will require not only policy reform but also the will to overcome deeply embedded dependencies on foreign imports.
