Nigeria’s Petrol Import Rises 207% to 543m Litres in One Month, Puts Pressure on Naira

Nigeria's petrol imports saw a dramatic 207 percent increase in June, reaching 543 million liters compared to 182.9 million liters in May, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This sharp rise in imports has intensified pressure on the naira, as demand for foreign exchange by marketers surged correspondingly. The NMDPRA's figures indicate a significant shift in the nation's fuel supply dynamics. The Dangote Refinery, a major domestic producer, has consistently argued that continued imports undermine local refining efforts, asserting its substantial capacity is more than adequate to meet national demand.

However, oil marketers and the NMDPRA have countered, emphasizing the need to ensure supply security and maintain stable prices for consumers, especially given fluctuations in domestic production. They also argue that relying solely on one refinery could create a monopoly. Despite a 10 percent increase in crude oil receipts by local refineries between May and June, the dispute persists. Notably, the Dangote Refinery recently began selling its products in dollars, signaling challenges with the naira-for-crude policy.

While Nigeria's total petrol stock sufficiency increased by 22 percent in June, reaching 19.7 days, the supply of Automotive Gas Oil (AGO), or diesel, saw a 14 percent decline, with daily receipts falling to 16.2 million liters from 18.8 million liters in May. Kerosene receipts also dropped by 31 percent. Data on natural gas utilization for the first six months of the year showed fluctuations, with June recording 5.116 billion standard cubic feet per day (Bscf/d). Sectoral utilization, however, presented a mixed performance, with gas supplied to power generation at 0.509 Bscf/d in June.