Nigeria's Petrol Imports Rise as Domestic Refinery Supplies Fall

Nigeria's dependence on imported petrol surged in July, signaling a setback in its efforts to boost domestic refining capacity. Latest statistics reveal a sharp 21 percent drop in petrol supplied by local refineries, forcing a corresponding 9 percent increase in foreign imports to meet demand.

The overall daily petrol supply decreased by 10 percent, from 50.6 million liters in June to 45.5 million liters in July. This decline was primarily driven by local refineries, which reduced their output from 32.5 million liters per day to 25.8 million liters. Concurrently, imported petrol receipts climbed from 18.1 million liters to 19.7 million liters daily, indicating a growing reliance on foreign sources.

This reversal follows a similar trend in June, when domestic supply fell by 22 percent and imports surged by 207 percent. The continued weakening of local refinery output, coinciding with a 21 percent drop in crude oil receipts by these refineries, underscores the persistent challenge of feedstock availability. Despite being a major crude oil producer, Nigeria has historically depended heavily on imported refined products due to the underperformance of state-owned refineries. While private refineries like Dangote's and rehabilitation efforts at public plants offer hope, the July figures suggest these initiatives have yet to fully stabilize domestic supply.

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Total PMS daily receipts fell by 10 per cent from 50.6 million litres per day in June to 45.5 million litres per day in July. The decline was driven by a 21 per cent drop in domestic supplies, which fell from 32.5 million litres per day to 25.8 million litres per day, even as petrol imports rose by nine per cent from 18.1 million litres per day to 19.7 million litres per day.