Nigeria’s Refining Conundrum: Why Oil Marketers Continue to Import Fuel Despite Rising Capacity
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Nigeria’s longstanding dependence on imported petroleum products persists despite the country’s significant investments in refining capacity. Data from tanker vessel movements reveal that major oil marketers imported 6.38 billion litres of petrol (Premium Motor Spirit) and diesel (Automotive Gas Oil) in just five months, exacerbating foreign exchange pressures and raising questions about the effectiveness of recent policy efforts to boost local refining.
Independent marketers and retailers have openly criticised the trend, arguing that it undermines local investment and drains valuable foreign currency reserves. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have been vocal in their opposition, insisting that Nigeria’s refining sector is now capable of meeting local demand.
A detailed report published in The PUNCH disclosed that between October 2024 and February 2025, Nigeria imported over 5.01 billion litres of petrol and 1.37 billion litres of diesel, valued at approximately N6tn. Despite government assurances that local refineries, including the recently rehabilitated Port Harcourt and Warri facilities, are operational, the influx of imported fuel suggests a persistent shortfall in domestic production.
A Persistent Reliance on Imports
The imported fuel arrived through four key seaports, with Apapa and Tin Can in Lagos receiving the highest volumes—3.86 billion litres. Port Harcourt followed with 5.63 billion litres, while Calabar and Warri received 1.39 billion and 389.52 million litres, respectively.
This development raises concerns given Nigeria’s reported refining capacity. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) claims that domestic refineries, including the Port Harcourt refinery (210,000 barrels per day), Warri refinery (125,000bpd), and the privately owned 650,000bpd Dangote Refinery, can collectively meet the country’s daily fuel consumption of 50 million litres. Yet, large-scale fuel importation continues unabated.
In November 2024, the Nigerian National Petroleum Company Limited (NNPCL) announced the commencement of petrol production at the Port Harcourt refinery, following extensive rehabilitation efforts. Within weeks, the Warri refinery also resumed operations. However, market realities suggest that these refineries are yet to achieve optimal output, forcing major marketers to continue importing fuel.
Who Is Importing and Why?
An analysis of importation documents shows that aside from NNPCL, major oil marketers—including BOVAS, Eternal Oil, AA Rano, Fatgbems, Matrix Energy, and Rainoil—are among those bringing in fuel. Despite NNPCL’s claims that it has not imported a single litre of fuel in 2025, the data indicates that private firms have stepped in to fill the supply gap.
In October 2024, 1.39 billion litres of petrol and 335.77 million litres of diesel were imported. By February 2025, Nigeria had imported another 701.75 million litres of petrol and 265.88 million litres of diesel, confirming a continued reliance on imports to bridge domestic shortfalls.
The Debate Over Local Refining and Market Competition
The continuation of fuel imports has sparked debate within the industry. PETROAN’s president, Billy Gillis-Harry, argues that the importation contradicts Nigeria’s commitment to developing its refining sector. He insists that stakeholders had previously agreed to prioritise local production, warning that continued reliance on imports undermines these efforts.
Similarly, IPMAN spokesperson Chinedu Ukadike maintains that independent marketers now source their products locally and do not engage in fuel importation. According to Ukadike, Nigeria’s refining sector has moved past the era of dependence on foreign refineries, and industry players should focus on sustaining local investments.
However, Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), presents a contrasting perspective. He argues that fuel importation enhances market competition and helps keep prices in check. “We want local refining, but importation plays a role in ensuring that prices remain competitive,” he states.
Despite these assertions, concerns remain over the impact of large-scale fuel importation on Nigeria’s fragile economy. With a depreciating naira and acute forex shortages, stakeholders warn that sustained import dependence could undermine the country’s economic stability.
A Crossroads for Nigeria’s Energy Policy
Nigeria finds itself at a crossroads. While domestic refining capacity has expanded, questions linger over the operational efficiency of state-owned facilities and their ability to consistently meet national demand. Meanwhile, oil marketers, driven by supply gaps and economic considerations, continue to import fuel, exacerbating foreign exchange pressures.
As the government pushes for full deregulation of the petroleum sector, the challenge remains: Can Nigeria truly transition from an import-dependent market to a self-sufficient refining hub? The coming months will determine whether recent investments in refining capacity will translate into tangible reductions in fuel imports or if the country will remain trapped in a cycle of dependence on foreign supply.
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