Nigeria’s oil marketers have raised alarms over the country’s continued heavy reliance on fuel imports, despite significant improvements in domestic refining capacity.
In the first five months of 2025, the nation spent a staggering N6 trillion to import refined petroleum products, including 6.38 billion liters of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), placing increased pressure on the country’s already strained foreign exchange reserves.
A Troubling Import Bill
The figures, outlined in a detailed analysis of tanker vessel movements into Nigerian ports, show that from October 2024 to February 2025, Nigeria imported over 5.01 billion liters of petrol and 1.37 billion liters of diesel. The costs of these imports are equally concerning.
With an average price of N900 per liter for petrol and N1,100 per liter for diesel, the total expenditure on fuel imports during this period amounted to N6.02 trillion. These imports arrived through various seaports across the country, with Lagos’s Apapa and Tin Can ports receiving the lion’s share of the fuel, followed by Port Harcourt, Calabar, and Warri.
Despite Nigeria’s combined domestic refining capacity of 985,000 barrels per day, which is enough to meet the nation’s daily consumption of 50 million liters, oil marketers have continued to rely heavily on imports.
This ongoing importation underscores a critical gap in the country’s ability to process crude oil locally, even with recent efforts to boost refining output.
Local Refineries Begin Operations, Yet Imports Persist
In a bid to reduce dependence on fuel imports, the Nigerian government has made efforts to ramp up domestic refining capacity. Notably, the Port Harcourt refinery resumed operations in late 2024 after a lengthy rehabilitation.
The refinery, which now boasts a combined capacity of 210,000 barrels per day, is expected to play a significant role in reducing fuel imports.
Similarly, the Warri refinery resumed production, focusing on key products like kerosene and diesel.
Furthermore, the much-anticipated Dangote Refinery, with a capacity of 650,000 barrels per day, began operations earlier this year, raising hopes that Nigeria could become a net exporter of refined petroleum products. Yet, despite these developments, the importation of fuel continues, highlighting the gap between refinery capacity and actual local production.
Marketers Push for Local Content
Independent petroleum marketers have expressed frustration over the importation of refined petroleum products, especially at a time when the nation’s domestic refineries are increasingly capable of meeting local demand. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), which represents the interests of independent marketers, has voiced strong opposition to the importation of fuel.
PETROAN’s National President, Billy Gillis-Harry, emphasized the importance of prioritizing local content and urged all stakeholders to support local refineries like Dangote and NNPC.
He stated, “We have collectively decided that we must do everything possible to encourage local production and local consumption.
Anyone importing fuel now may not be doing so with approval from the Central Bank of Nigeria because the CBN does not have $600 million to provide for fuel imports.”
Gillis-Harry highlighted the potential benefits of focusing on local refineries, including job creation, reduced dependence on foreign exchange, and the possibility of transforming Nigeria into a hub for refined product exportation.
He underscored that local refineries, including those owned by Dangote, Azikel, Edo, and others, offer the opportunity to boost Nigeria’s economy and strengthen the naira.
A Call for Policy Clarity and Economic Focus
Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN), which represents smaller marketers, has also spoken out against the ongoing fuel imports. Spokesperson Chinedu Ukadike stressed that IPMAN members are now sourcing products locally from refineries like Dangote and NNPC, rather than relying on imports.
“The issue of importation has been settled. We should be looking forward to encouraging local production,” Ukadike stated. “By supporting local refineries, we can stimulate investments, create jobs, and reduce Nigeria’s reliance on foreign currency.”
IPMAN’s position reflects the broader shift in the industry toward self-sufficiency, with a focus on supporting domestic refining ventures. Marketers argue that the country’s oil and gas sector needs to focus on growing local industries and creating employment opportunities for Nigerians, rather than depending on foreign sources of refined fuel.
The Competing Viewpoint: Market Competitiveness and Price Regulation
Not all stakeholders share the same sentiment. Clement Isong, the Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), argues that fuel imports help maintain market competition, which ultimately benefits consumers.
Isong explained that competition in the market is critical for keeping fuel prices competitive, as locally refined products must compete with imported fuels.
He acknowledged the importance of local refining but maintained that imports continue to play a crucial role in stabilizing fuel prices.
“We want local refining,” Isong said, “but what importation does is ensure that the market remains competitive, which keeps pump prices as low as possible.”
Forex Drain and Economic Implications
The biggest concern raised by marketers is the impact of fuel imports on Nigeria’s foreign exchange reserves. With the country’s dependence on imports for refined petroleum products, the forex burden continues to grow.
Independent marketers have pointed out that the heavy importation of fuel is a major drain on Nigeria’s foreign currency, a situation that could be mitigated by strengthening domestic refining capacity.
The Central Bank of Nigeria has faced increasing pressure from marketers to provide clearer guidelines and support for domestic refiners, particularly as the country seeks to reduce its dependence on imported products.
With foreign exchange increasingly scarce, many are calling for a more strategic focus on promoting local refining and reducing fuel imports.
A Transition Still in Progress
Nigeria’s fuel import bill, which has reached an eye-watering N6 trillion in just five months, underscores the challenges facing the country’s oil and gas sector.
While the government’s push to rehabilitate and expand local refineries is promising, the persistence of fuel imports highlights the gap between capacity and production.
Marketers are calling for a shift toward local content, urging both the government and industry players to focus on maximizing the potential of domestic refineries.
The road to self-sufficiency in refined petroleum products will likely be long, but if Nigeria can fully capitalize on its refining capabilities, it may one day reduce its reliance on imports, strengthen its currency, and build a more resilient economy. However, for now, the debate continues, as stakeholders weigh the benefits of local production against the need for market competition and affordable fuel prices.
