A review of foreign trade statistics released by the National Bureau of Statistics (NBS) confirms this trend.

Despite the touted functionality of local refineries in Nigeria, the country continues to import refined petroleum in increasing quantities. 

A review of foreign trade statistics released by the National Bureau of Statistics (NBS) confirms this trend.

According to the NBS document, as of the fourth quarter of 2023 (October to December 2023), the value of imported motor spirit (ordinary) or petrol stood at N1.807 trillion.

Between October and December 2024, the total value of imported refined petroleum increased to N3.303 trillion, representing an additional N1.496 trillion spent on refined petroleum imports in the last quarter of 2024 compared to the same period in 2023. 

This figure is also higher than the amount spent in previous years. In the last quarter of 2022, N1.558 trillion was spent on refined petroleum imports, while N1.443 trillion was recorded in the last quarter of 2021. In the fourth quarter of 2019, the country spent N574.8 billion on refined petroleum importation.

In November 2024, the Nigerian National Petroleum Company Limited (NNPCL) announced that its Port Harcourt Refinery in Rivers State had commenced crude oil processing. This announcement was made by the company’s Chief Corporate Communications Officer, Femi Soneye, who revealed that the refinery would operate at 60% capacity, processing 60,000 barrels per day (bpd).

“Port Harcourt Refinery Begins Production; Truck Loading Starts Today, Tuesday,” he announced via X (formerly Twitter).

He continued: “Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation.

“Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!”

The Port Harcourt Refinery operates alongside the Dangote Refinery, which is also located in Nigeria. The Dangote Refinery has a 650,000 bpd production capacity. However, it remains unclear how much of its output is supplied to the Nigerian market, given reported pricing disagreements with NNPCL.

This ongoing reliance on fuel imports contradicts the Bola Tinubu-led government’s promise to end fuel importation by February 2024. 

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had made this commitment during a working visit to the Port Harcourt Refining Company in Eleme, Rivers State.

Lokpobiri had stated: “The essence of today’s inspection is to assess the extent of work done at the Port Harcourt Refinery, and we are happy with the progress.

“The Port Harcourt Refinery, when completed, is expected to produce 54,000 to 60,000 bpd, while the Warri Refinery, set to come on stream by February 2024, will produce 75,000 bpd. If we combine this output with the Dangote Refinery, we will be able to stop fuel importation, allowing Nigeria to reap the full benefits of deregulation.”

Refined petroleum imports continue to be a major drain on Nigeria’s foreign exchange reserves, exerting pressure on the country’s currency.