Petrol Imports Skyrocket by 105% to #N15tn, Says NBS

Nigeria’s Petrol imports skyrocketed in 2024, despite significant investments in local refining capacity, highlighting the country’s continued reliance on imported fuel.

According to the National Bureau of Statistics (NBS), the cost of petrol imports rose by 105.3% to N15.42tn in 2024 from the N7.51tn recorded in 2023.

The commencement of operations at the 650,000-barrel-per-day capacity Dangote Petroleum Refinery last year and ongoing revival efforts at the other local refineries were expected to reduce import dependence. However, existing data suggests that these refineries have yet to reach full production capacity to meet domestic demand.

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.

The continued reliance on imported fuel has significant implications for Nigeria’s economy. The surge in petrol imports has put pressure on the country’s foreign exchange reserves, contributing to the depreciation of the naira. Furthermore, the high cost of fuel imports has increased the burden on the government, which has to subsidize the cost of fuel for consumers.

Commenting on the development, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said that importation promotes competition, helping drive down the price of PMS. “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.”

To address the country’s reliance on imported fuel, experts have called for increased investment in domestic refining capacity. This includes revamping existing refineries and building new ones to meet domestic demand. By increasing domestic refining capacity, Nigeria can reduce its reliance on imported fuel, save foreign exchange, and stimulate economic growth.