By Benson Daniel
Nigeria’s petrol imports surged by 207 per cent in June, while the Centre for the Promotion of Private Enterprise has raised concerns over the continued reliance on imported Premium Motor Spirit despite expanding domestic refining capacity.
Average daily petrol imports increased from 5.9 million litres in May to 18.1 million litres in June, representing a 206.8 per cent month on month increase.
The sharp rise came as domestic petrol supply fell by about 22 per cent, from 41.5 million litres per day in May to 32.5 million litres per day in June. Despite the decline in local supply, total daily petrol receipts increased from 47.4 million litres to 50.6 million litres during the period.
The development has renewed concerns over Nigeria’s fuel supply structure, particularly the balance between imported products and petrol produced by local refineries.
The CPPE argued that petrol imports should increasingly be tied to genuine and independently verified supply gaps rather than becoming a parallel supply channel when domestic refiners have sufficient capacity to meet demand.
The organisation warned that indiscriminate import approvals could undermine investment in Nigeria’s emerging refining industry, weaken refinery utilisation and increase pressure on foreign exchange demand.
The sharp increase in imports has also become more significant because Nigeria has invested heavily in expanding domestic refining capacity. Local refineries are expected to reduce the country’s dependence on imported petroleum products and retain more value within the domestic economy.
The CPPE noted that imports would still be necessary in situations where domestic supply is genuinely insufficient. Such circumstances could include refinery outages, temporary production disruptions, seasonal demand increases, quality requirements or the need to replenish strategic stocks.
However, it called for a more transparent and predictable framework under which import approvals are based on clearly established market conditions.
The group proposed the development of an emergency import framework that could be activated when specific thresholds are reached, including critically low petrol stock levels, prolonged refinery outages or significant failures in domestic product deliveries.
Such a system, it argued, would provide certainty to both local refiners and importers while preventing unnecessary imports from weakening domestic investments.
The sharp increase in petrol imports also comes amid concerns over crude supply to domestic refineries. Reliable access to crude remains essential for local refiners to maintain production and maximise their available capacity.
The June figures showed that higher domestic refining capacity alone does not automatically guarantee sufficient petrol supply. Operational efficiency, crude availability, refinery maintenance, product yields and distribution infrastructure all influence the volume of refined products reaching the market.
For Nigeria, the development highlights the continuing transition from a predominantly import dependent petroleum market towards a system where domestic refineries are expected to provide the majority of national demand, with imports serving as a balancing mechanism.
The Dangote refinery and other domestic refining facilities have significantly changed the country’s downstream petroleum landscape, but the latest import figures show that supply gaps can still emerge despite increased local refining capacity.
The CPPE therefore called for stronger coordination between petroleum regulators to ensure that domestic refineries receive adequate crude supplies and that local production is maximised before importation is authorised.
Greater transparency in the import approval process could also help reduce uncertainty for investors considering new refining, storage, transportation and petroleum distribution projects.
For consumers, the key concern remains the availability and affordability of petrol. While imports can help prevent shortages when domestic supply falls, excessive dependence on imported products exposes the market to international crude and product prices, freight costs, foreign exchange movements and other external pressures.
Nigeria’s long term objective therefore remains the development of a competitive domestic refining ecosystem capable of meeting local demand and eventually supporting exports.
The 207 per cent increase in petrol imports provides a fresh indication that achieving that objective will require not only additional refining capacity but also reliable crude supply, efficient refinery operations, transparent import policies and stronger downstream infrastructure.
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