Despite having a combined refining capacity of 985,000 barrels per day, Nigeria’s three operational refineries are currently contributing less than half of the nation’s daily petrol needs. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the country is still heavily reliant on imports to meet its petrol consumption, which stands at 50 million litres daily.
Farouk Ahmed, the Chief Executive of NMDPRA, revealed this during a press briefing on Wednesday in Abuja. He explained that the significant shortfall in local production was being compensated through the importation of refined petroleum products, a process facilitated by the granting of import licences under the Petroleum Industry Act (PIA) 2021. Without these imports, Ahmed emphasized, Nigeria would face a severe fuel shortage.
The situation persists despite efforts to revive the nation’s refineries. Earlier in 2024, two state-owned refineries—the Port Harcourt refinery (210,000 bpd) and Warri refinery (125,000 bpd)—resumed operations after years of being inactive. Additionally, the much-anticipated Dangote refinery with a 650,000 bpd capacity also began operations, raising hopes for self-sufficiency in refined products.
However, even with the operationalization of these refineries, NMDPRA’s Executive Director for Distribution System, Storage, and Retailing Infrastructure, Ogbugo Ukoha, revealed that Nigeria’s dependence on petrol imports remains significant. He noted that less than 50% of the 50 million litres of petrol consumed daily is supplied by domestic refineries, and the remaining shortfall is filled by imports.
Ukoha further stated that the country’s petrol consumption has decreased since the removal of the fuel subsidy in May 2023, with average daily consumption dropping from 66 million litres to around 50 million litres. Despite this reduction, the local refineries have not been able to meet even half of the national demand.
Remarkably, none of the refinery owners, including the state-owned oil firms, have been involved in the importation of petroleum products this year. Instead, other oil marketing companies (OMCs) have been responsible for bridging the gap through imports. Ukoha expressed that the NMDPRA remains vigilant in ensuring there is no fuel scarcity, and should the situation worsen, the regulator would resort to the “supplier of last resort” as described in the PIA.
On the quality of imported fuel, Ukoha emphasized that all imported petroleum products meet the specifications set by the Standards Organization of Nigeria and the PIA. He dismissed unfounded claims circulating on social media about the quality of these products, reminding the public that such misinformation undermines the integrity of the industry.
In light of the current state of Nigeria’s refining capacity and reliance on imports, Ukoha urged that further steps be taken to bridge the supply gap and avoid future fuel shortages. He reassured the public that the NMDPRA was closely monitoring the situation to ensure adequate supply of quality petroleum products across the country.
