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Petrol leads Nigeria’s ₦9.18tn import bill, Amid local refining efforts

Petrol marketers lament low patronage at filling stations

Despite increased activities in Nigeria’s refining sector, including operations at the Dangote Refinery and the rehabilitation of the Port Harcourt Refinery, the nation imported ₦9.18 trillion worth of petrol (Premium Motor Spirit) between January and September 2024, according to the National Bureau of Statistics (NBS).

The staggering import figure reflects Nigeria’s continued dependence on foreign sources for petroleum products, even as local refineries work to bridge the gap.

The Dangote Refinery, which began production earlier in the year, was expected to significantly reduce Nigeria’s fuel imports. Similarly, the federal government has been making substantial investments in the Port Harcourt Refinery to increase local refining capacity.

However, the scale of imports indicates that these facilities are yet to meet domestic demand fully. Diesel (gas oil) imports ranked second, valued at ₦3.22 trillion, while kerosene imports totaled ₦250.2 billion, further highlighting the country’s reliance on foreign refined products.

Experts argue that while local refineries show promise, challenges such as infrastructure delays, operational bottlenecks, and limited capacity have hindered their ability to curb imports significantly. They emphasize the need for continued investment and efficient management to ensure refineries operate at full capacity.

The report’s findings also underscore the importance of aligning local refining efforts with Nigeria’s broader energy policy to reduce import dependence, save foreign exchange, and create jobs. Stakeholders hope that the ramping up of operations at local refineries like Dangote and Port Harcourt will soon reflect in reduced import volumes and costs.

Other notable items on the top 10 list include butanes (₦0.6 trillion), sugar cane (₦581.36 billion), and used vehicles (₦284.46 billion). Kerosene (₦250.2 billion), motorcycles (₦245.01 billion), machines (₦242.73 billion), and other medicaments (₦227.9 billion) also made significant contributions to the country’s import bill.

SOURCE: chronicle.ng

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