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Nigeria’s petrol imports surged by 105.3% to N15.42tn in 2024, despite increased domestic refining capacity.
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The country’s petrol import bill has steadily risen over the past five years.
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Local refineries, including the Dangote Petroleum Refinery and the Port Harcourt Refining Company, have yet to reach full production capacity to meet domestic demand.
Nigeria’s petrol imports doubled in 2024, rising by 105.3% to N15.42tn, despite significant investments in local refining, according to data from the National Bureau of Statistics.
The latest foreign trade statistics report revealed that the cost of petrol imports skyrocketed from N7.51tn in 2023 to N15.42tn in 2024.
This sharp increase came at a time when expectations were high for a decline in reliance on foreign supply following the commencement of operations at the 650,000-barrel-per-day capacity Dangote Petroleum Refinery and ongoing revival efforts at other local refineries.
Over the past five years, Nigeria’s petrol import bill has steadily risen. In 2020, the country spent N2.01tn on fuel imports, more than doubling to N4.56tn in 2021.
By 2022, the figure further increased to N7.71tn before slightly declining to N7.51tn in 2023.
However, in 2024, fuel import expenditure surged to an all-time high of N15.42tn, marking the largest petrol import bill in Nigeria’s history.
Recall that despite the commencement of petrol production by three major refineries in Nigeria, oil marketers continued to import and distribute the product nationwide.
Marketers imported 2.3 billion litres of petrol between September 11 and December 5, 2024.
The continued importation of petrol is contrary to a public announcement by some group of marketers who earlier stated their intention to halt petrol imports and focus on domestic supply.
The local refineries are the 650,000 barrel per day capacity Dangote Petroleum Refinery located in Lagos and the 210,000bpd capacity Port Harcourt Refining Company in Rivers State.
The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, explained that importation promotes competition, helping drive down the price of PMS.
READ ALSO: NNPC Slashes Petrol Price to N860 Per Litre
“What importation does for us is that it contributes to the market’s competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful.”
Isong added, “We want local refining. Let’s be clear. We want local refining. What ensures that we have the most competitive price is that locally refined fuel prices have to compete with imported prices. That is what keeps our prices at the pump as low as possible.”
NNPC Signs Gas Supply Agreement with Ssonic Petroleum for LNG Plant
The Nigerian National Petroleum Company Limited, through its gas marketing subsidiary and partners, has signed a Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd. to supply natural gas to the company’s proposed Liquefied Natural Gas (LNG) plant in the Lekki Free Trade Zone, Lagos State.
According to a statement by the company’s spokesperson, Olufemi Soneye, the agreement was signed as part of efforts to guarantee energy security in Nigeria.
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