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Nigeria’s reliance on imported petrol increased in July as supplies from domestic refineries fell by 21 per cent, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The decline came despite the country’s expanding refining capacity, with importers increasing their contribution to the domestic petrol market.
The development highlights continued challenges in Nigeria’s transition towards fuel self-sufficiency. The Dangote Petroleum Refinery and other local refineries have expanded production, but domestic supply has fluctuated, while petrol imports have risen when local output falls. Industry data previously showed that imported petrol remained a significant part of national supply despite increasing domestic refining.
The renewed dependence on imports could increase pressure on foreign exchange demand and expose consumers to international market price movements. It also raises questions about the country’s ability to sustain adequate domestic petrol supply as competition between local refiners and importers continues to reshape the downstream petroleum sector.
