Nigeria Spends N3 Trillion on Petrol Importation in 42 Days Despite Local Refining Capacity

Nigeria Spends N3 Trillion on Petrol Importation in 42 Days Despite Local Refining Capacity

Nigeria has spent a staggering N3 trillion on petrol importation between October 1st and November 11th, 2024, despite having local refining capacity, notably the Dangote Refinery. This massive expenditure has raised concerns about the country's reliance on foreign fuel sources and its economic implications.

Over the 42-day period, oil marketers imported approximately 1.5 million metric tons of Premium Motor Spirit, 414,000 metric tons of Diesel, and 14,500 metric tons of Aviation Fuel, totaling around 2 billion liters of fuel. This trend is alarming, especially considering the country's potential to refine fuel locally.

The removal of the fuel subsidy by President Tinubu in May 2023 has led to skyrocketing fuel and energy prices, contributing to Nigeria's high inflation rate and escalating cost of living. Data from the National Bureau of Statistics reveals that Nigeria spent N3.5 trillion on fuel imports in the second half of 2023 . This has put immense pressure on the economy, making it essential to reassess the country's energy strategy.

The Dangote Refinery, a state-of-the-art facility, is expected to enhance Nigeria's refining capacity and reduce reliance on imports. However, the continued importation of fuel raises questions about the refinery's utilization and the country's energy policy. Experts suggest that optimizing local refining capacity could mitigate the economic burden of fuel importation and create a more sustainable energy future.

Furthermore, allegations of fuel importation fraud have surfaced, with the Coalition for Economic Liberation and Transformation (CELT) raising concerns over an alleged N3 trillion fuel importation fraud involving the Nigerian National Petroleum Company Limited and its business partners . These allegations underscore the need for transparency and accountability in the oil and gas sector.

As Nigeria grapples with economic challenges, it is crucial to address the issues surrounding fuel importation and local refining capacity. By doing so, the country can reduce its dependence on foreign fuel sources, stabilize energy prices, and promote economic growth.