By Benson Daniel
Nigeria imported 244.9 million litres of diesel in July 2026 as modular refineries continued to contribute only a small share of the country’s automotive gas oil supply, highlighting the difficulties facing smaller domestic refining plants.
The latest midstream and downstream petroleum statistics released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that oil marketing companies imported 244.9 million litres of diesel during the month.
By comparison, modular refineries supplied just 18.35 million litres, representing about 2.5 per cent of the total diesel supply recorded in July.
Nigeria consumed or received an average of 23.6 million litres of diesel daily during the month, translating to about 731.6 million litres over the 31 day period.
Domestic refineries supplied 486.7 million litres, accounting for the larger portion of the market, while imports made up almost one third of total diesel receipts.
The figures underline the continued importance of imports despite the Federal Government’s push to expand domestic refining capacity and reduce Nigeria’s reliance on refined petroleum products from overseas.
The performance of modular refineries was particularly weak compared with their potential contribution to the market. Their combined output averaged only 592,000 litres per day throughout July.
WalterSmith Refinery recorded the highest daily average among the listed modular facilities at 341,000 litres, with its capacity utilisation put at 70.42 per cent.
Aradel Refinery supplied an average of 144,000 litres per day, operating at 36.32 per cent capacity utilisation, while Edo Refinery recorded average daily production of 107,000 litres.
Edo Refinery, however, posted the highest capacity utilisation rate among the operating modular refineries at 95.72 per cent.
OPAC Refinery supplied only 7,000 litres per day, representing capacity utilisation of 0.86 per cent, while Duport Refinery was listed as shut down during the month.
The low contribution from modular refineries comes despite expectations that smaller plants could play a bigger role in supplying diesel and other refined products, particularly in areas where large refineries and petroleum distribution infrastructure have limited reach.
The Crude Oil Refineries Association of Nigeria has previously said modular refineries could supply more than 10 per cent of Nigeria’s diesel requirements if operating conditions improve, while identifying inadequate access to crude oil feedstock as one of the major constraints facing the plants.
The July data also revealed that the three refineries operated by the Nigerian National Petroleum Company Limited recorded no production during the month.
The Port Harcourt Refining Company was listed as shut down in June and July, while the Warri and Kaduna refineries were recorded as non producing.
The continued dependence on imported diesel has implications for the country’s foreign exchange demand, even though domestic refineries have taken a larger share of the market.
Diesel is widely used by manufacturers, transport operators, construction companies, telecommunications firms and other businesses that depend on generators and heavy duty equipment.
Any significant disruption in supply or sharp increase in prices can therefore feed into operating costs across several sectors of the economy.
The growing contribution of large domestic refineries, particularly the Dangote refinery, has helped increase local supply. However, the July figures show that domestic production has yet to completely eliminate the need for imported diesel.
For modular refiners, access to crude feedstock, financing, infrastructure and a predictable operating environment remain critical to increasing output.
Industry stakeholders have argued that enabling smaller refineries to operate closer to capacity would broaden Nigeria’s refining base and reduce pressure on a handful of large facilities.
The latest figures therefore present a mixed picture for Nigeria’s refining ambitions. While domestic refineries supplied the majority of diesel consumed in July, the country still relied on nearly 245 million litres of imports, while modular plants contributed only a fraction of total supply.
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