- Nigeria spent about N15.4 trillion on petrol imports in 2024.
- Policy imbalance exposes local refiners to higher risks than importers.
Nigeria’s fuel import dependence continues to weaken domestic refining, according to the Crude Oil Refineries Association of Nigeria (CORAN). In its latest position paper, CORAN warned that Nigeria spent about N15.4 trillion on petrol imports in 2024. This figure more than doubled the N7.5 trillion recorded in 2023.
Meanwhile, local refinery investors committed tens of billions of dollars to refining infrastructure across the country. Therefore, the association described Nigeria’s continued reliance on imports as a clear disservice to domestic refiners.
According to CORAN, local refinery operators have shown strong confidence in Nigeria’s downstream petroleum sector. These operators include large-scale, mid-scale, and modular refinery companies. They invested in fixed industrial assets that cannot be easily relocated or resold.
As a result, they face significant financial exposure when policies fail to support local refining. CORAN stressed that refining demands long-term commitment rather than short-term profit strategies.
Furthermore, the association explained that refining ranks among the most capital-intensive petroleum activities. Investors must manage volatility in crude supply, foreign exchange risks, and inconsistent regulations.
They also face power shortages, logistics bottlenecks, and daily operational challenges. Therefore, CORAN stated that a refinery represents an industrial declaration of confidence in Nigeria’s future.
By investing in steel structures, distillation units, and continuous operations, refiners accept substantial risk. In return, they help build domestic capacity, environmental compliance, and market discipline.
However, CORAN argued that fuel importers follow a very different approach.
Importers rely on short-term trading strategies that generate profits without creating industrial value. Consequently, Nigeria’s fuel import dependence continues to grow despite domestic capacity.
During the subsidy era, importers benefited from price arbitrage and favourable foreign exchange access. They also exploited weak verification systems for consumption and subsidy reimbursement. As a result, billions of naira left the economy without meaningful refinery investment. CORAN noted that this model prioritised port access and import licences over energy security.
Even after the removal of subsidies, import reliance remains high. CORAN cited National Bureau of Statistics data showing over 20 billion litres of petrol imported in 2023. Import costs then surged to N15.4 trillion in 2024. Therefore, the association warned that massive foreign exchange outflows continue to drain the economy. These funds could instead support refining, storage, petrochemicals, logistics, and industrial jobs.
The association also criticised how import profits were deployed. According to CORAN, importers often channelled capital into real estate or financial assets. Others invested in upstream oil assets, exporting crude rather than refining it locally. This behaviour, CORAN said, favours quick returns over industrial development.
CORAN therefore urged the federal government to prioritise domestic refining. It called for transparent crude allocations and aligned pricing mechanisms. It also recommended restricting import licences where local supply meets demand. Accordingly, such reforms would reduce Nigeria’s dependence on fuel imports and protect long-term industrial growth.