Nigeria’s daily petrol imports have dropped significantly to 25 million litres as domestic refineries now supply half of the country’s daily fuel requirements, marking a major shift in the nation’s petroleum sector. This development signals a transformative period in Nigeria’s energy landscape, with daily consumption settling at 50 million litres, down from previous highs of over 66 million litres.
The revelation came from Mr. Ogbugo Ukoha, Executive Director of Distribution Systems, Storage and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), during a stakeholders meeting in Abuja. The announcement underscores the impact of President Bola Tinubu’s subsidy removal policy, implemented on May 29, 2023, which triggered a significant reduction in national fuel consumption.
According to Ukoha, the dramatic shift in consumption patterns emerged immediately following the subsidy withdrawal. Prior to this policy change, Nigeria’s daily petrol consumption had been steadily climbing through 2021, 2022, and early 2023, regularly exceeding 60 million litres per day and sometimes reaching 66 million litres.
The current situation presents a stark contrast to previous years, with domestic refineries now contributing nearly 50% of the national daily requirement. To maintain steady supply and prevent potential scarcity, the remaining portion is being secured through imports, as mandated by the Petroleum Industry Act (PIA). Notably, the government has emphasized that companies involved in domestic refining operations are not participating in import activities.
This development marks a significant milestone in Nigeria’s journey toward energy self-sufficiency, though the continuation of imports highlights the ongoing challenges in meeting domestic demand entirely through local production. The government’s strategic approach of maintaining imports alongside domestic production demonstrates a commitment to preventing the fuel scarcity that has historically plagued the nation.
Looking ahead, the NMDPRA has announced additional regulatory changes aimed at enhancing safety and efficiency in fuel transportation. A notable development is the authority’s decision to ban 60,000-litre capacity tankers from transporting petrol and other petroleum products, effective March 1, 2025. This measure represents part of broader efforts to modernize and secure the downstream sector.
The reduction in consumption following subsidy removal provides interesting insights into previous market dynamics and suggests that earlier consumption figures may have been inflated by various factors, including possible cross-border smuggling. The new consumption pattern of 50 million litres daily appears to reflect more accurate domestic demand.
The success of domestic refineries in meeting half of the national demand represents a significant achievement in Nigeria’s petroleum sector. This development aligns with long-standing national goals of reducing dependence on imported refined products and building domestic refining capacity. The ability to produce 25 million litres daily through local refineries marks a substantial improvement from previous years when the country relied almost entirely on imports.
For ordinary Nigerians, these changes in the petroleum sector could have far-reaching implications. The increased domestic production capacity might lead to more stable fuel supply and potentially more predictable pricing, though market forces continue to play a significant role in determining final costs to consumers.
The government’s proactive approach to maintaining supply through a combination of domestic production and imports has helped ensure a scarcity-free market, particularly during high-demand periods such as the recent festive season. This strategy demonstrates a practical approach to managing the transition period as domestic refining capacity continues to develop.
As Nigeria continues its journey toward greater energy independence, the current balance between domestic production and imports represents a crucial stepping stone. The government’s transparent communication about these developments helps stakeholders and citizens understand the ongoing changes in the sector and the rationale behind current policies.
The successful operation of domestic refineries, contributing significantly to national supply, suggests that Nigeria is making tangible progress toward its goal of energy self-sufficiency. However, the continued need for imports underscores the importance of maintaining realistic policies that ensure steady supply while working toward increased domestic production capacity.
