Reports have revealed that between October 1, 2024, and January 31, 2025, the Nigerian National Petroleum Company (NNPC) Limited and select marketers spent over N5.5 trillion on the importation of Premium Motor Spirit (PMS) and diesel (AGO).
Meanwhile, the management of the Dangote Refinery is currently in court with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the NNPC, and other oil marketers, seeking to compel the industry regulator to halt the issuance of import licenses for fuel imports, despite adequate in-country supplies.
THISDAY learned on Friday that between October 1, 2024, and January 31, 2025, the NNPC and some oil marketers spent over N5.5 trillion on petrol and diesel imports, according to port documents.
However, the NNPC has consistently defended its purchasing decisions, stating that they are driven by economic factors, particularly pricing considerations.
“While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability. If local supply is cost-effective, it will be preferred, but the same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import,” the NNPC said recently, while defending its continuous importation of products.
Industry data analysed on Friday revealed that over 3.2 million metric tonnes of petrol and 980,485 metric tonnes of diesel were imported between October 2024 and January 2025. This amounts to roughly 4.29 billion litres of petrol and over 1.153 billion litres of diesel, with a total cost exceeding N5.5 trillion.
Aside from the NNPC, other importers during this period included BOVAS, Eternal Oil, AA Rano, and others.
Despite the recent restart of the Warri and Port Harcourt refineries and the Dangote Petroleum Refinery becoming operational, imported products arrived through Lagos, Calabar, Warri, and Port Harcourt.
The Dangote Refinery has increased production to 550,000 bpd, sufficient for the Nigerian market and export. However, most crude oil refined at Dangote’s facility is imported due to the national oil company’s failure to meet the local supply agreement.
Under the deal, the Dangote refinery is expected to pay for crude oil in naira and sell the refined products to marketers in naira, eliminating currency and forex risks, while reducing the country’s reliance on the dollar for domestic transactions.
Although Nigerian authorities report an increase in crude oil production, sources from the Dangote Refinery indicate that crude oil supply to the $20 billion facility has actually decreased.
For example, in February 2025, only four cargoes were allocated, and in March, just two cargoes of 950,000 barrels each were booked, totaling 1.9 million barrels for the month.
This represents an allocation of 61,290 bpd, far below the 385,000 bpd target.
Sources close to the Dangote Refinery, preferring to remain anonymous, stated that the refinery continues to sell products to marketers in naira and absorb logistics costs to ensure uniform pricing across the country.
“The refinery has generously assumed an equalisation status, a responsibility typically undertaken by the government. This has been met with enthusiasm by our partners, such as MRS, Heyden, and Ardova.
“The Petroleum Products Retail Outlet Owners Association (PETROAN), recently, entered into an agreement with the refinery to distribute its Premium Motor Spirit (PMS) nationwide at a uniform price across all its filling stations,” one of the sources said.
It was learned that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) allocated only 1.4 million barrels for March. Of this, the NNPC received 17 cargoes (35 percent) of the total production, five were allocated to the Dangote Refinery, two to the Warri Refinery, and three to the Port Harcourt Refinery. Additionally, the remaining seven cargoes were allocated to various financiers as part of loan repayment, with no other local refineries receiving crude allocations for the period.
THISDAY was also told that despite the presidential order to sell crude oil in naira locally, transactions were still partially done using the greenback.
Subsequently, of the five cargoes allocated to the Dangote refinery, two are to be paid for using the local currency, while the remaining three will be settled in dollars from export proceeds.(SaharaReporters)
