Nigeria’s expenditure on petrol imports skyrocketed in 2024, reaching an unprecedented N15.42 trillion—a figure more than double that of the previous year. This surge comes despite ongoing investments in domestic refining capacity, underscoring the nation’s persistent reliance on imported fuel.
According to the latest report from the National Bureau of Statistics, petrol import costs soared by 105.3% in 2024 compared to N7.51 trillion in 2023. The upward trend in import expenditure has been evident over recent years, with Nigeria spending N2.01 trillion in 2020 and N4.56 trillion in 2021, before reaching N7.71 trillion in 2022. Although there was a marginal decline in 2023, the dramatic jump in 2024 was largely driven by a steep 40.9% depreciation of the naira, which significantly inflated import costs in local currency terms.
Despite high expectations that enhanced local refining capacity would reduce dependence on imports, the reality has been starkly different. The commencement of operations at the Dangote Refinery, with its 650,000 barrels-per-day capacity, and the rehabilitation of state-owned facilities such as the Port Harcourt Refining Company have not been enough to meet national fuel demand. The Port Harcourt plant, with an installed capacity of 210,000 bpd, currently produces only 60,000 bpd, highlighting the persistent supply gap.
Analysts point to ongoing delays in refinery ramp-up, supply chain challenges, and chronic demand-supply imbalances as key factors contributing to Nigeria’s continued reliance on imported petrol. The vulnerability to foreign exchange fluctuations further compounds these challenges, straining government finances and diminishing consumer purchasing power.
In a related development, the Nigeria National Petroleum Company Limited (NNPCL) announced in December 2024 the restart of the 125,000 barrels-per-day Warri Refinery and Petrochemical Company following an extensive rehabilitation effort. However, even with these initiatives, the importation of refined petroleum products remains substantial, signaling that Nigeria’s quest for energy self-sufficiency is far from over.
As Nigeria grapples with these challenges, the soaring import bill serves as a stark reminder of the country’s vulnerability to global oil price fluctuations and forex volatility, while underscoring the urgent need to accelerate domestic refining capabilities.
