Marketers Import ₦2.4 Trillion Worth of Petrol Amidst Dangote Refinery’s Market Disruption

Despite the commencement of operations at the Dangote Refinery, Nigeria’s petrol import bill remains substantial. In the first quarter of 2025 alone, marketers imported petrol valued at approximately ₦2.4 trillion. This figure underscores the ongoing challenges in achieving energy self-sufficiency, even with the presence of one of Africa’s largest refineries.

The Dangote Refinery, with a capacity of 650,000 barrels per day, began producing petrol in September 2024. However, its full potential has been hampered by limited crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL), which has struggled to meet the refinery’s feedstock requirements due to existing forward contracts and other logistical challenges.

In the interim, independent marketers have continued to rely on imports to meet domestic demand. This reliance has been further complicated by the deregulation of the downstream sector, which ended NNPCL’s exclusive rights to purchase petrol from the Dangote Refinery, allowing marketers to buy directly.

The influx of imported petrol has intensified competition in the market, leading to a price war that has seen pump prices fluctuate. Dangote’s strategic price reductions, aimed at providing relief to consumers and supporting government policies, have compelled other players, including NNPCL, to adjust their pricing strategies accordingly.

Despite these developments, concerns persist about the long-term implications of continued petrol imports on Nigeria’s economy, especially in light of the substantial investments made in domestic refining capacity. Stakeholders advocate for enhanced collaboration between the government, NNPCL, and private sector players to ensure optimal utilization of local refineries, thereby reducing dependence on imports and fostering energy security.

As the Dangote Refinery works towards achieving full operational capacity, the dynamics of Nigeria’s petrol supply chain remain in flux, highlighting the need for strategic policy interventions to balance market forces with national economic interests.