The National Bureau of Statistics (NBS) has reported a significant increase in Nigeria’s petrol imports, which surged by 105.3% to ₦15.42 trillion in 2024, up from ₦7.51 trillion in 2023.
This sharp rise occurred despite efforts to boost domestic refining capacity and ongoing rehabilitation of the country’s state-owned refineries.
In December 2024, the Nigeria National Petroleum Company Limited (NNPCL) announced the resumption of operations at the Warri Refinery and Petrochemical Company (WRPC), which processes 125,000 barrels per day (bpd). Approved for rehabilitation in 2021 at a cost of $897 million, the refinery’s restart marked a key milestone. Similarly, the Port Harcourt Refining Company (PHRC), with a total installed capacity of 210,000bpd, resumed operations at its older plant, producing 60,000bpd.
Historical data shows Nigeria’s escalating dependence on fuel imports over recent years. In 2020, petrol imports cost ₦2.01 trillion. This figure rose by 126.9% to ₦4.56 trillion in 2021 due to increased import reliance and global price volatility. By 2022, the expenditure reached ₦7.71 trillion, reflecting a 69.1% increase. While 2023 saw a slight dip to ₦7.51 trillion, a 2.6% decline, 2024 witnessed an unprecedented leap, fueled by a 40.9% depreciation of the naira.
Despite efforts to enhance local refining, production has remained insufficient to meet growing demand, necessitating continued reliance on imports. Contributing factors include supply chain inefficiencies, foreign exchange fluctuations, and persistent demand-supply imbalances.
Nigeria operates four state-owned refineries: one in Kaduna, one in Warri, and two in Port Harcourt. However, their limited output has exacerbated the strain on government finances and consumer purchasing power as the cost of petrol imports continues to rise.