- The Federal Government will establish a National Strategic Petroleum Reserve in 2025 to shield the economy from global oil market disruptions.
- With the Dangote Refinery and others ramping up production, Nigeria is reducing petrol imports and targeting fuel self-sufficiency by mid-2025.
The Federal Government of Nigeria will establish a National Strategic Petroleum Products Reserve in 2025 to protect the country’s economy from disruptions in the global oil market.
At a press briefing on Tuesday, April 15, Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), announced the move, which the Petroleum Industry Act mandates. He said the reserve aims to cushion supply shocks and boost Nigeria’s energy security.
Despite Nigeria’s status as a major oil producer, the country continues to face frequent fuel shortages and long queues at petrol stations. To address this, the government plans to leverage rising domestic refining capacity, most notably the 650,000 barrels-per-day Dangote Refinery, to strengthen resilience against fluctuations in global supply.
Nigeria maintains petroleum reserves that can sustain about 30 days of consumption. Ahmed revealed that the planned National Strategic Stock will significantly exceed the existing capacity, though he did not specify the projected volume. He noted that the initiative draws inspiration from the United States’ Strategic Petroleum Reserve.
Under the Petroleum Industry Act, the NMDPRA holds the authority to grant bulk petroleum liquids storage licences to private depots that can store petroleum products for a long duration.
The Dangote Refinery, which began operations in September, alongside five smaller functional refineries, has helped reduce Nigeria’s reliance on imported fuel. According to NMDPRA data, petrol imports fell sharply from 50.8 million litres per day in September to 28.7 million litres per day last month.
These local refineries are collectively expected to refine 770,500 barrels daily through June 2025. The NMDPRA expressed confidence that as refining capacity grows, Nigeria could soon completely phase out petrol imports.