Petrol imports surged by 105.3%, hitting ₦15.42 trillion in 2024.
The latest data by the National Bureau of Statistics, NBS, on the foreign trade statistics, said the increase was from 7.51Trillion Naira recorded in 2023.
This comes despite current increasing domestic refining capacity, especially at the 650,000 barrels-per-day Dangote Refinery and the ongoing rehabilitation of state-owned refineries.
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.
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.
Nigeria spent N2.01trn on fuel imports in 2020. By 2021, this figure more than doubled, rising by 126.9% to N4.56trn, indicating a sharp increase in import dependence and global price fluctuations. The upward trend continued in 2022, with import costs jumping by 69.1% to N7.71 trillion, driven by rising crude oil prices and Nigeria’s inability to refine a significant portion of its fuel needs locally. In 2023, petrol import expenditure recorded a marginal decline of 2.6% to N7.51 trillion, suggesting a temporary easing, possibly due to factors such as forex adjustments and lower global oil prices.
However, riding on the back of a 40.9% depreciation of the naira, 2024 saw a 105.3% increase to N15.42 trillion, the highest on record.
Despite the rise in local refining, production remains insufficient in meeting demands, necessitating continuous dependence on importation.
Supply chain inefficiencies, and persistent demand-supply imbalances, Foreign exchange fluctuations, among other factors, have also militated against meeting local demands, as the rising cost of petrol imports continues to strain government finances and consumer purchasing power.
Nigeria operates four national refineries: one in Kaduna, one in Warri, and two in Port Harcourt.
