Emmanuel Ochayi
The Nigerian National Petroleum Company (NNPC) Limited and some oil marketers spent over N5.5 trillion on fuel imports between October 1, 2024, and January 31, 2025. Despite the availability of locally refined products, reports show that massive volumes of Premium Motor Spirit (PMS) and diesel (AGO) were still brought into the country.
According to port records, over 3.2 million metric tonnes of petrol and 980,485 metric tonnes of diesel were imported within the period. This translates to about 4.29 billion litres of petrol and over 1.153 billion litres of diesel.
Join our WhatsApp ChannelNNPC Defends Fuel Import Decisions
In response to concerns about continued fuel imports, the NNPC stated that economic factors determine whether it buys fuel locally or from foreign suppliers.
“While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability. If local supply is cost-effective, it will be preferred. The same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import,” NNPC said.
Oil Marketers Still Importing Despite Local Supply
Despite the operations of the Warri and Port Harcourt refineries and the Dangote Petroleum Refinery as reported by Prime Business Africa, fuel imports continued. Industry insiders confirmed that imported products were received through Lagos, Calabar, Warri, and Port Harcourt.
Some oil marketers involved in fuel importation during the period include BOVAS, Eternal Oil, AA Rano, Matrix Energy, Rainoil, and AYM Shafa.
A source from the Dangote Refinery revealed that the company has ramped up production from 385,000 barrels per day (bpd) to 550,000 bpd. The refinery is said to have the capacity to meet local demand and even export refined products.
“The refinery can fully supply the Nigerian market and still export products. However, crude oil supply from the NNPC has not met expectations,” the source said.
READ ALSO: PMS Price: Marketers Raise Concerns Over Epileptic Fuel Supply
NNPC Fails to Meet Local Crude Supply Agreement
Under the naira-for-crude deal, the Dangote Refinery is expected to buy crude oil in naira and sell refined fuel to marketers in naira. The goal is to reduce forex dependence. However, reports indicate that NNPC has not provided enough crude to meet the refinery’s needs.
In February 2025, the refinery received only four cargoes, and for March, just two cargoes of 950,000 barrels each have been allocated. This amounts to only 61,290 bpd—far below the agreed 385,000 bpd.
A refinery insider disclosed: “We expected more crude from NNPC, but instead, allocations have reduced. This affects production and our ability to stabilise the market.”
PETROAN Partners With Dangote Refinery
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) recently entered into an agreement with the Dangote Refinery to distribute petrol at a uniform price across all filling stations nationwide.
“The refinery has generously assumed an equalisation status, a responsibility typically undertaken by the government. This has been met with enthusiasm by our partners, such as MRS, Heyden, and Ardova,” the source added.
Crude Oil Sales Still In Dollars Despite Naira Policy
Despite a presidential order for crude oil to be sold in naira locally, reports indicate that some transactions are still carried out in dollars.
Of the five cargoes allocated to the Dangote Refinery for March, two will be paid for in naira, while the remaining three will be settled in dollars from export proceeds.
As fuel import spending continues to rise, industry stakeholders are calling for full local refining to reduce dependence on foreign products and stabilise prices.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
