Petrol Imports Surge 207% as IPMAN Opposes Continued Fuel Importation

By Benson Daniel

Nigeria’s petrol import volume has risen by 207 per cent, a development that has sparked fresh concerns within the downstream petroleum sector, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) urging the Federal Government to discourage continued dependence on imported fuel.

The sharp increase in imports comes despite ongoing efforts to boost domestic refining capacity through the rehabilitation of state owned refineries and increased output from private facilities. Industry stakeholders argue that the growing reliance on imported Premium Motor Spirit (PMS) undermines investments in local refining and weakens Nigeria’s drive toward energy self sufficiency.

IPMAN expressed concern that continued fuel importation could discourage investors in the domestic refining industry, particularly at a time when the country is seeking to maximise the benefits of newly operational refining plants. The association maintained that greater patronage of locally refined petroleum products would strengthen the economy, conserve foreign exchange and create more employment opportunities across the oil and gas value chain.

According to industry analysts, the increase in petrol imports reflects the nation’s persistent supply challenges and the need to bridge the gap between domestic demand and local refining capacity. While local production has improved in recent months, experts say output remains insufficient to meet the country’s daily fuel consumption.

Economic analysts also warned that heavy dependence on imported petrol places additional pressure on Nigeria’s foreign exchange reserves, exposes the country to fluctuations in global oil prices and increases vulnerability to international shipping and supply chain disruptions.

Stakeholders have therefore called for policies that prioritise domestic refining, encourage investment in refinery infrastructure and ensure a competitive market capable of meeting national fuel demand. They also urged regulators to provide a stable operating environment that would enable local refiners to thrive and reduce the country’s dependence on imported petroleum products.

Energy experts believe expanding local refining capacity will not only enhance energy security but also strengthen the naira by reducing demand for foreign exchange used in importing refined products. They added that increased domestic production could improve supply stability and contribute to long term economic growth.

As Nigeria continues to implement reforms in the petroleum sector, industry observers say the balance between fuel imports and local refining will remain a critical issue in determining the country’s energy future. They maintain that sustained investment, regulatory certainty and support for indigenous refiners will be essential to achieving a self sufficient and resilient downstream oil industry.