Lagos | August 4, 2025 — Despite the commencement of fuel supply by the $20bn Dangote Petroleum Refinery, petroleum marketers in Nigeria have resumed large-scale importation of refined products, relying on foreign sources for over 70 per cent of the nation’s petrol needs in May and June.
This was revealed in fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which showed that 71.38 per cent of Nigeria’s Premium Motor Spirit (PMS) consumption during the two-month period was sourced from imports, while only 28.62 per cent came from local refining, predominantly the Dangote refinery.
The figures were presented to the Federation Accounts Allocation Committee (FAAC) for June 2025 and obtained by The PUNCH on Sunday.
Out of 3.25 billion litres of PMS consumed in May and June, 2.32 billion litres were imported, while 927 million litres came from local production. In May alone, 43.22 million litres were imported daily, compared to 34.10 million litres per day in June.
Despite Dangote’s refinery contributing about 15 million litres daily, imports remain the dominant supply source — a development that raises critical questions about the viability of local refining amid heavy investment in domestic capacity.
Marketers Spend N2.1tn on Fuel Imports
With an average pump price of ₦905 per litre, marketers spent an estimated ₦2.1 trillion on fuel imports during the two months under review.
Lagos State topped the list of fuel consumption, with 205.66 million litres trucked out, followed by Ogun (88.69 million litres) and the FCT (77.5 million litres). Other major consumers included Oyo, Delta, and Kano, indicating higher demand in densely populated and industrialised areas.
In contrast, states like Jigawa (9.4 million litres), Yobe (11.7 million litres), and Ekiti (15.3 million litres) recorded the least truck-out volumes.
Imports Dominate Other Fuel Segments
Similar import dominance was noted across other fuel types. Over 99 per cent of Aviation Turbine Kerosene (ATK) and Household Kerosene (HHK) were imported. Diesel imports also increased from 7.3 million litres/day in May to 8.7 million litres/day in June, despite a slight uptick in local production.
Notably, Liquefied Petroleum Gas (LPG) was entirely imported, with zero local output recorded in both months.
Dangote Pushes for Fuel Import Ban
Amid the surge in imports, Aliko Dangote, President of the Dangote Group, has urged the Federal Government to include refined petroleum products in the list of banned items under the ‘Nigeria First’ policy.
Speaking at the Global Commodity Insights Conference co-hosted by NMDPRA and S&P Global, Dangote said continued importation undermines domestic refining and discourages investment in the sector.
“The Nigeria First policy should apply to petroleum products. Fuel importation is killing local refining,” Dangote said, calling for deliberate protectionist policies similar to those in the US, Canada, and the EU.
Stakeholders Reject Monopoly Push
However, his call has drawn strong opposition from industry stakeholders who fear it could create a monopoly.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), warned that banning imports would hurt independent marketers and reduce competition.
“If Dangote wants to dominate, let it be through cheaper pricing, not by eliminating competition,” Ukadike said. “Despite being locally refined, Dangote’s PMS isn’t the cheapest.”
He also criticised the high port and lifting charges imposed on marketers sourcing from the refinery, many of which are denominated in dollars — counterproductive to easing foreign exchange pressures.
Similarly, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), insisted Nigeria should maintain a free market.
“No company should dominate the downstream sector in a free economy. Importation actually stabilises supply,” he said.
Cheaper Imports Undercut Dangote Sales
According to Jeremiah Olatide, CEO of PetroleumPrice.ng, importers have managed to land petrol at lower costs than the Dangote refinery’s ex-depot rate, leading to reduced demand for locally refined fuel.
“Eighty per cent of private depots sold below Dangote’s price in July. This forced Dangote’s refinery into a supply slump,” Olatide said, noting that importers ramped up supplies in June ahead of Dangote’s August 15 fuel roll-out.
He predicted significant changes in Nigeria’s fuel market post-August, as players brace for a power tussle between importers and local refiners.
Experts Warn Against Ban, Advocate Market Diversity
Prof. Dayo Ayoade, an energy law expert at the University of Lagos, cautioned against banning fuel imports, saying it would undermine energy security and contradict international trade laws.
“We can’t rely solely on Dangote. That would create a monopoly, which is unacceptable for national and energy security,” Ayoade said.
He called on the government to incentivise the development of other refineries and support a more competitive energy sector before considering restrictions on imports.
