Nigeria’s dependence on imported fuel has surged dramatically, with new data showing that imports now account for 71% of the country’s fuel supply. The sharp increase is largely due to oil marketers shunning local refineries, citing reliability and operational concerns.
According to industry insiders, the shift represents a growing disconnect between local refining capacity and market demand. Many independent and major marketers are reportedly opting for offshore sources, claiming foreign refineries offer more consistent product quality and timely delivery.
The development comes despite federal efforts to revitalize local refineries and reduce import dependency. With the Dangote Refinery gradually ramping up operations and several modular refineries under development, the latest trend poses questions about investor confidence in domestic refining infrastructure.
An official from the Major Oil Marketers Association of Nigeria (MOMAN), who spoke on condition of anonymity, said, “Until local refineries prove they can meet industry needs efficiently and at competitive prices, traders will continue to look outward.”
Energy economist Dr. Chinedu Eze believes the shift threatens the long-term sustainability of Nigeria’s downstream sector. “Import reliance puts pressure on forex reserves and undermines the economic rationale behind domestic refining investments,” he said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has yet to officially respond to the surge, but stakeholders are calling for urgent policy intervention to restore confidence in local refining operations.
As global oil prices remain volatile, the implications of this shift may be far-reaching, affecting pump prices, subsidy estimates, and Nigeria’s energy security outlook.
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