Nigeria’s petrol import bill skyrocketed by 105.3% in 2024, reaching a record-breaking ₦15.42 trillion, according to the latest foreign trade report by the National Bureau of Statistics (NBS). This marks a significant rise from ₦7.51 trillion recorded in 2023, despite ongoing efforts to boost local refining capacity.
The increase comes even as Dangote Refinery, with a 650,000 barrels-per-day (bpd) capacity, ramps up operations and state-owned refineries undergo rehabilitation.
In December 2024, NNPC Limited announced the restart of the 125,000bpd Warri Refinery, which had been under a $897 million rehabilitation program since 2021. Similarly, the Port Harcourt Refining Company (PHRC), with an installed capacity of 210,000bpd, resumed operations at its older plant, producing 60,000bpd.
Nigeria’s fuel import expenses have steadily increased over the past five years:
2020 – ₦2.01 trillion
2021 – ₦4.56 trillion (126.9% increase)
2022 – ₦7.71 trillion (69.1% increase)
2023 – ₦7.51 trillion (2.6% decline)
2024 – ₦15.42 trillion (105.3% increase)
The surge in 2024 is largely attributed to the 40.9% depreciation of the naira, making imports more expensive, despite improved local refining efforts.
Challenges Impacting Local Refining
Insufficient Refinery Output – Even with new refining capacity, production is not meeting demand.
Forex Fluctuations – The weakening naira continues to push up import costs.
Supply Chain Disruptions – Logistics challenges impact fuel availability.
High Demand – Domestic consumption remains high, keeping reliance on imports.
The country operates four state-owned refineries:
Kaduna Refinery
Warri Refinery
Port Harcourt Refinery (Two plants)
With import costs at an all-time high, experts call for accelerated refinery rehabilitation and policy adjustments to reduce reliance on imports. Until local production meets demand, fuel imports will continue to weigh on the economy, impacting government spending and consumer purchasing power.
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