Nigeria gasoline imports recorded the N15.42 trillion record in 2024 despite refinery operations

The imports of gasoline from Nigeria increased in 2024, more than doubling, despite the increase of the internal refining capacity, emphasizing the persistent dependence of the country on the imported fuel.

The most recent statistics report on the Foreign Trade of the National Bureau of Statistics (NBS) revealed that gasoline import costs increased by 105.3% to N15.42 trillion in 2024, increasing from N7.51 trillion in 2023.

This increased increase came at a time when expectations were high for a decrease in fuel imports, following significant investments in local refinement.

What do the data say

• Oil import costs have followed a steep ascending trajectory over the past five years, reflecting both an increasing dependence on foreign offer and foreign depreciation.
• In 2020, Nigeria spent N2.01 trillion for fuel imports. By 2021, this figure was more than doubled, increasing by 126.9% to N4.56 trillion, which indicates an increased increase in import addiction and global price fluctuations.
• The ascending trend continued in 2022, with import costs jumping by 69.1% to N7.71 trillion, caused by the increase of gross oil prices and the inability to refine a significant part of its fuel needs.
• In 2023, the expenses with the import of gasoline registered a marginal decrease of 2.6% to N7.51 trillion, which suggests a temporary reduction, possibly due to factors such as foreign currency and lowering global oil prices.
• However, 2024 registered a peak of 105.3% to N15.42 trillion, the highest registered. This dramatic growth can be attributed to the 40.9% accentuated depreciation of Naara, which has significantly inflated the import costs in terms of local currency, even if the prices worth dollars have remained relatively stable.

Import probably because of unsatisfied internal offer

Nigeria anticipated a reduced dependence on the imported fuel, with the beginning of operations at the Dangota refinery of 650,000 barrels per day and the continuous rehabilitation of state refineries.

The refining company of Port Harcourt (PHRC), with a total installed capacity of 210,000BPD, has recently restored operations at the old wear, which currently produces 60,000BPD.

However, the available data suggest that internal refinement remains insufficient to respond to national demand, requiring large -scale imports.

Despite the efforts to increase the ability to refine internal, Nigeria remains strongly based on imported fuel due to delays in the refinery ramp, inefficiencies of the supply chain and the persistent demand supply, among other factors.

The vulnerability of the country to foreign currency fluctuations still complicates its ability to obtain energy self -sufficiency, because the growing cost of petrol imports continues to tighten government finances and consumer buying power.

The persistent growth of fuel import invoices affirms the continuous vulnerability of Nigeria to the volatility of foreign exchange, the global fluctuations of oil prices and delays in achieving energy self -sufficiency.

What should you know

In December 2024, the National Petroleum Company of Nigeria Limited (NNPCL) announced the restart of the 125,000 barrels per day (BPD) Warri refinery and petrochemical company (WRPC), which was approved for rehabilitation in 2021 for $ 897 million.

• This announcement followed the reports that the 60,000 BPD phase of the Port Harcourt refinery began the refining of key fuels. Nigeria operates four national refineries: one in Kaduna, one in Warri and two in Port Harcourt.
• The refurbishment of these refineries, in addition to the operations of the Dangote refinery, was expected to reduce the import of petroleum products from Nigeria and make the country independent of fuel.
• However, the import of refined products continues on a large scale, despite the increasing number of local refineries.