Industry stakeholders have expressed concerns over the impact of these imports on the nation’s foreign exchange reserves, urging greater focus on local production to strengthen the economy and reduce dependency on external sources.
The independent marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have expressed strong opposition to the continued reliance on fuel imports. According to a detailed analysis published in The PUNCH, fuel importers utilized scarce foreign exchange to bring in over 5.01 billion liters of petrol and 1.37 billion liters of diesel between October 2024 and November 2025.
At an average price of N900 per liter for petrol and N1,100 per liter for diesel, importers spent an estimated N4.51 trillion on petrol and N1.51 trillion on diesel, totaling N6.02 trillion. The imported products were distributed across four major seaports, with the Apapa and Tin Can ports in Lagos receiving the largest share of 3.86 billion liters. Port-Harcourt port followed with 5.63 billion liters, Calabar port received 1.39 billion liters, and Warri port accounted for the lowest volume at 389.52 million liters.
This reliance on imports persists despite Nigeria's combined domestic refining capacity of 985,000 barrels per day, which is sufficient to meet the country's daily consumption of 50 million liters, as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The recent operationalization of key refineries, including the Port Harcourt and Warri refineries, as well as the 650,000 barrels per day Dangote Petroleum Refinery, has raised expectations for reduced dependency on imports.
On November 26, 2024, the Nigerian National Petroleum Company Limited (NNPCL) announced the commencement of petrol production at the Port Harcourt refinery following extensive rehabilitation. The refinery, comprising an old plant with a capacity of 60,000 barrels per day and a new plant with 150,000 barrels per day, has a combined capacity of 210,000 barrels per day. Similarly, the Warri refinery resumed operations after a prolonged period of inactivity, focusing on producing critical products such as Straight Run Kerosene, Automotive Gas Oil, and heavy and light Naphtha.
Despite these advancements, major oil marketers have continued to import fuel to address domestic shortfalls. Analysis of import data reveals that, aside from the NNPCL, other importers during the period included BOVAS, Eternal Oil, AA Rano, Fatgbems, Matrix Energy, Ibeto, Swift, Raj, T-Time, Wosbab Energy, NorthWest, Sobaz, TS Logistics, Shorelink, Stockgap, MEJ, Nepal, Rainoil, and AYM Shafa, among others.
In a statement last month, NNPCL Group Chief Executive Officer Mele Kyari emphasized that the company had not imported a single liter of fuel in 2025, relying instead on local sources to meet demand. However, import data for the period shows significant volumes of petrol and diesel being brought into the country. For instance, in October 2024, 1.39 billion liters of petrol and 335.77 million liters of diesel were imported. By February 2025, the figures stood at 701.75 million liters of petrol and 265.88 million liters of diesel.
The continued importation of petroleum products has sparked concerns among industry stakeholders. Billy Gillis-Harry, National President of PETROAN, criticized the practice, noting that stakeholders had previously agreed to prioritize local content and reduce fuel imports. He questioned the source of foreign exchange for these imports, given the Central Bank of Nigeria's limited dollar reserves.
Gillis-Harry emphasized the importance of supporting local refineries, including Dangote, Port Harcourt, Azikel, Edo, Niger Delta, and Watersmith refineries, to strengthen the naira and reduce reliance on foreign exchange. "We are focused on patronizing local refineries to boost the domestic economy and create jobs," he stated.
Similarly, Chinedu Ukadike, spokesperson for IPMAN, reiterated that independent marketers are no longer involved in fuel imports and are instead sourcing products locally. He highlighted the need to focus on domestic refining and investment to drive economic growth and reduce unemployment. "We must encourage local content and domestic production to strengthen our economy," Ukadike said.
In contrast, Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), argued that importation plays a role in maintaining market competitiveness. He noted that the availability of imported fuel helps keep prices at the pump low, benefiting consumers. "While we support local refining, importation ensures competitive pricing and market stability," Isong explained.
As Nigeria continues to expand its domestic refining capacity, the debate over fuel imports underscores the need for a balanced approach that supports local production while ensuring market stability and economic growth. The focus on local refineries and investments in the downstream sector is expected to play a pivotal role in reducing the country's dependence on imports and strengthening its economic resilience.