Nigeria Halts Fuel Imports as NNPC Turns to Local Refineries, Championing Energy Sovereignty
The Nigerian National Petroleum Company Limited (NNPC) has announced a pivotal shift in the nation’s energy policy, halting all refined fuel imports and sourcing entirely from domestic refineries, including the landmark Dangote Petroleum Refinery. Speaking at the Nigerian Association of Petroleum Explorationists (NAPE) conference in Lagos, NNPC’s Group CEO, Mele Kyari, confirmed the decision as part of Nigeria’s drive towards energy independence.
“Today, NNPC does not import any product; we are taking only from domestic refineries,” Kyari disclosed, underscoring a move that signals the end of decades of reliance on imported fuels. The NAPE conference, themed “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth, and Affordability”, served as a platform for industry leaders to discuss the challenges and opportunities in Nigeria’s energy landscape.
This development comes amid rising energy costs and fuel subsidies’ removal, measures taken by President Bola Tinubu’sadministration to address the economic crisis. Recent estimates reveal that Nigeria spent approximately ₦24 trillion annually on fuel imports—an unsustainable sum Tinubu believes will be reduced by embracing compressed natural gas and increasing local refining.
Despite the country’s vast oil reserves, Nigeria has for years imported most of its refined fuels due to inadequate domestic refining capacity. Kyari dispelled claims that the NNPC had hindered local refineries, stating, “We are proud part-owners of Dangote refinery. There is no need for any pressure from the streets to support domestic refineries; it’s a well-informed business decision.”
Kyari highlighted Nigeria’s prized crude, which he referred to as “Lamborghini crude”—high-quality and costly to process. Most global refiners blend Nigerian crude with lower-grade oils to reduce costs, a strategy he suggested is unnecessary within Nigeria, given the shift to local refining. This “Lamborghini crude,” he noted, could still pose pricing challenges domestically, but the government and NNPC are exploring ways to address this sustainably.
Kyari also clarified recent concerns, dismissing reports that the NNPC had refused to sell crude to Dangote in naira as a sabotage attempt. “It makes no difference to us if we sell in naira. The biggest source of FX pressure in our country is the import of PMS. If we source all supply domestically, we control inflation and FX pressure,” he said, commending President Tinubu for initiating a policy expected to reduce foreign exchange speculation and inflation.
Energy security remains a significant concern, Kyari noted, with over 50% of Nigerians lacking electricity and 70% without clean fuel. He stressed the need for a domestic energy strategy that extends beyond petroleum, indicating that while PMS availability is critical, energy security must consider broader access to clean and affordable fuels and electricity.
In the upstream sector, Kyari shared progress in clearing outstanding joint venture debts, attributing delays to the subsidy burden that diverted funds away from core operations. With the subsidy now eliminated, NNPC can concentrate on its upstream priorities, which Kyari emphasised are central to sustainable energy provision for Nigeria’s population.
Looking forward, Kyari assured that the NNPC’s plans for the first quarter of 2025 include the installation of 12 compressed natural gas (CNG) stations and a mini LNG plant. This development, he said, would bring “cheaper, cleaner fuel” to local markets, signalling NNPC’s ongoing commitment to addressing Nigeria’s energy needs from within its borders.
