Diesel imports hit 245m litres as modular refineries struggle

Nigeria’s modular refineries supplied only 18.35 million litres of automotive gas oil, popularly known as diesel, in July 2026, as oil marketing companies imported 244.9 million litres of the product during the month.

The figures were contained in the midstream and downstream statistics for July 2026 released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

According to the data, the modular refineries supplied an average of 592 thousand litres of diesel daily throughout the 31 days of July.

The volume represented a small portion of the total diesel supply recorded during the month, which stood at an average of 23.6 million litres per day. Over the month, total diesel supply amounted to about 731.6 million litres.

Domestic supply from Dangote and other refineries accounted for 486.7 million litres of the total supply, while imports by oil marketing companies contributed 244.9 million litres.

The figures showed that modular refineries, whose combined output was included in domestic refinery supply, accounted for about 18.35 million litres, or roughly 2.5 per cent, of the total diesel supply recorded in the month.

A breakdown of the performance of the modular refineries showed that WalterSmith recorded the highest daily average supply at 341 thousand litres, with a capacity utilisation rate of 70.42 per cent.

Aradel supplied an average of 144 thousand litres per day, while its capacity utilisation stood at 36.32 per cent.

Edo Refinery recorded an average daily supply of 107 thousand litres, having the highest capacity utilisation among the listed operating modular refineries at 95.72 per cent. OPAC recorded a daily average production of only 7 thousand litres, with capacity utilisation of 0.86 per cent.

Duport Refinery was listed as shut down during the month.

The performance shows the limited contribution of the modular refineries to Nigeria’s diesel supply despite the country’s push to expand domestic refining capacity.

The data also showed that the three refineries operated by the Nigerian National Petroleum Company Limited recorded no production in July.

The Port Harcourt Refining Company was listed as shut down in both June and July, while the Warri Refining and Petrochemical Company and Kaduna Refining and Petrochemical Company were both listed as not producing.

Meanwhile, the country’s total daily average receipts of key petroleum products in July stood at 45.5 million litres for petrol, 23.6 million litres for diesel and 1.9 million litres for aviation turbine kerosene.

For liquefied petroleum gas, the average daily receipt was 5.3 thousand tonnes.

The 45.5 million litres daily average of petrol translated to approximately 1.41 billion litres over the 31 days of July, while diesel supply amounted to 731.6 million litres and aviation fuel receipts totalled about 58.9 million litres.

The July data therefore showed that while domestic refineries remained the major source of diesel supply, oil marketers still imported a substantial volume of the product, with imports accounting for almost one-third of total diesel receipts during the month.

The development came as the contribution of modular refineries remained relatively low, with their combined July output of 18.35 million litres representing only a small fraction of the country’s overall diesel supply.

Earlier, the Crude Oil Refineries Association of Nigeria said modular refineries have the capacity to supply over 10 per cent of the nation’s diesel needs but identified inadequate feedstock as a key constraint.

CORAN’s Publicity Secretary, Eche Idoko, explained that modular refineries are hindered by insufficient crude supply.

“Any percentage at this moment is very, very important. When they said two per cent, I would contend with that figure. Our capacity is more than two per cent. We have the capacity to produce up to 10 per cent of our current diesel need, or 15 per cent, if we have enough crude supply. As I mentioned, refineries like OPAC are not even operating near their capacity yet. The reason the percentage is so low is the lack of crude feedstock,” he stated.

Consequently, Idoko revealed that the association has persistently requested that the naira-for-crude deal be extended to modular refineries, but without success.

He submitted, “We have argued; we have contended that the naira-for-crude deal be extended to modular refineries. Up until now, nothing has been done. Let modular refineries enjoy the incentives that come with the naira-for-crude policy.”(Punch)