Nigeria’s downstream oil sector is facing renewed tension as independent fuel marketers ramp up petrol imports worth over ₦436 billion in just nine days, despite growing calls to prioritize locally refined products from the Dangote Petroleum Refinery.
Data from maritime logistics firm Blue Sea Maritime shows that approximately 370,000 metric tonnes of petrol — equal to about 496 million litres — were discharged at ports across the country between May 11 and May 20, 2025. With the average landing cost per litre estimated at ₦879.48, the total value of these imports reached a staggering ₦436.37 billion.
This spike in importation comes amid an ongoing standoff between the refinery and fuel importers, fueled by disagreements over pricing models, distribution logistics, and business terms. The refinery, built at a cost of $20 billion, has struggled to gain full support from major oil marketers, many of whom continue to favor overseas supply channels.
Aliko Dangote, President of the Dangote Group, recently voiced concerns over the sustainability of his refinery, warning of persistent efforts by vested interests to undermine the facility’s operations. According to him, opposition from entrenched fuel importers and limited bulk purchasing from domestic distributors have hampered the refinery’s progress.
Industry insiders say importers are choosing foreign suppliers over the refinery due to what they describe as uncompetitive pricing and operational bottlenecks at Dangote’s facility. Reports also suggest that recent unscheduled maintenance at the refinery led to temporary supply dips, prompting a resurgence in demand for imported fuel — particularly from Europe.
Analysis by S&P Global indicates that gasoline shipments to Nigeria and Togo rose sharply this year, climbing from 200,000 barrels per day in January to over 300,000 barrels in March, before easing to 250,000 barrels daily in April. With Nigeria’s total national demand hovering around 300,000 barrels per day, foreign imports continue to play a dominant role in meeting local fuel needs.
Togo’s offshore hub in Lome has become a strategic transshipment point, as traders increasingly use the location to break up large cargoes for redistribution into Nigeria. This method helps marketers avoid certain taxes and maintain access to U.S. dollar transactions, even as the Nigerian government pushes for greater use of the naira in local petroleum trade.
Weakened shipping costs have also made imports more appealing. Freight rates on the UKC-West Africa route dropped to $22.68 per metric tonne as of mid-May, down from $28.25 during the same period last year.
Despite significant investment in domestic refining, Nigeria’s reliance on imported petrol continues to challenge the vision of energy independence. With marketers citing cost and efficiency as top priorities, the debate over sourcing strategies — local versus foreign — is far from over.
