For decades, Nigeria has relied heavily on fuel imports to meet domestic demands despite being a major crude oil producer. Even with the commencement of production by the Dangote Refinery in September, the country’s dependence on imports persisted due to limited output and pricing dynamics. Initially, the Nigerian National Petroleum Company Limited (NNPCL) was the sole off-taker of products from the Dangote Refinery.

However, after extensive discussions, the Federal Government announced on October 11, 2024, that oil marketers could directly negotiate and purchase petroleum products from the Dangote Refinery, bypassing the NNPCL. This move was aimed at diversifying fuel supply sources and addressing the nation’s long-standing import dependency.

Key stakeholders, such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have since signed agreements for product offtake from the refinery. They pledged to focus on domestic fuel sourcing, with PETROAN declaring a temporary suspension of fuel imports for 180 days, citing increased local production from Dangote and the Port Harcourt Refinery.

Despite these declarations, recent findings revealed ongoing fuel imports. Documents obtained from the Nigerian Ports Authority showed that three vessels carrying petroleum products berthed at ports in Lagos and Calabar this week. On December 3, 2024, a vessel named Binta Saleh discharged 15.864 million liters of petrol at Apapa Port. On December 4, another vessel, Shamal, brought in 26.44 million liters at Tin Can Port. Additionally, Watson is expected to deliver 26.44 million liters at Calabar Port on December 5.

These continued imports contradict recent efforts by the NNPCL and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to curtail fuel imports. The agencies had convened a high-level meeting with major oil marketers, including Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN), and other stakeholders, to strategize on achieving complete reliance on local refineries. The meeting expressed confidence in the Dangote Refinery’s ability to meet national demand.

Despite these assurances, substantial volumes of petroleum products continue to be imported. Between September and November 2024, over 2 billion liters of petrol were brought into the country. Notably, NNPCL and private marketers collectively imported 1.5 million metric tonnes of petrol, 414,018 metric tonnes of diesel, and 13,500 metric tonnes of aviation fuel in October alone, amounting to an expenditure of approximately ₦3 trillion ($1.8 billion).

In November, imports continued with 358,083 metric tonnes of petrol and 112,500 metric tonnes of diesel discharged at Nigerian ports. Additionally, between November 23 and 28, 105.67 million liters of petrol were distributed nationwide.

The sustained importation raises questions about the effectiveness of the government’s deregulation and refinery strategies. While local production capacity at Dangote and other refineries shows promise, the gap between supply and demand continues to necessitate imports. This ongoing dependency underscores the need for accelerated investment in local refining and logistical infrastructure to ensure self-sufficiency in the petroleum sector.