Nigeria’s Petrol Production Drops Amid Refinery Woes, Imports Surge

From 2015 to 2019, Nigeria managed to produce only 1.46 billion litres of petrol due to its inactive refineries, according to the National Bureau of Statistics (NBS). The recently released 2023 Petroleum Products Distribution Statistics report highlights the country’s struggle with refining capacity.

A breakdown of the data reveals that in 2015, Nigeria produced 377.9 million litres of petrol, while the figures fell to a mere 1.05 million litres in 2016. In 2017, the output was 951.56 million litres, and by 2019, only 128.1 million litres were produced. Notably, no petrol was refined in 2018, emphasizing the country’s reliance on imports for its fuel needs.

The 1.46 billion litres produced within the five-year period is insufficient for Nigeria’s demand, as it falls short of the country’s two-month consumption.

Due to the moribund state of Nigeria’s refineries, from 2020 to 2023, the country could only produce diesel and kerosene using modular refineries. Consequently, in 2023, over 20 billion litres of petrol were imported, a slight drop from the 23 billion litres imported in 2022. Specifically, 20.30 billion litres of Premium Motor Spirit (PMS) were imported in 2023, marking a 13.77% decline compared to 2022.

The Federal Government attributed this reduction in imports to the removal of fuel subsidies. In 2023, 69.71 million litres of kerosene were locally produced, a 56.02% increase from the 44.68 million litres produced the previous year. Similarly, local diesel production rose by 6.76% from 102.47 million litres in 2022 to 109.39 million litres in 2023.

Despite its vast oil reserves, Nigeria has remained dependent on fuel imports due to its lack of refining capacity. However, the recent commencement of petrol production at the Dangote refinery in September offers a glimmer of hope. Aliko Dangote, President of the Dangote Group, said the refinery aims to end Nigeria’s reliance on fuel imports once it becomes fully operational.

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