Marketers blame idle refineries for massive petrol imports

FILE: Port Harcourt refinery

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Nigeria has continued to depend on imported Premium Motor Spirit (petrol), as the three Federal Government-owned refineries being managed by the Nigerian National Petroleum Company Limited remain moribund.

NNPC and other marketers imported no less than 1.5 billion litres of petrol in November alone, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as oil marketers said the high import volume was due to the Dangote refinery being the only producer of PMS in Nigeria.

They decried the continued dormancy of NNPC refineries, stressing that it has further given credence to the massive imports of refined products nationwide.

As the Dangote refinery remains the only petrol-producing plant in Nigeria at the moment, the NMDPRA said it issued licences to the NNPC and other traders to bring in up to 52 million litres of petrol per day in November.

According to the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlet Owners Association of Nigeria, the NMDPRA would not have issued import licences if the NNPC refineries were functioning.

The November import figure of 52.1 million litres per day is the highest since the Dangote refinery started petrol production in September 2024. The $20bn Lekki refinery supplied 19.5 million litres per day in the same month, mounting to 585 million litres for the whole month, underscoring the country’s high dependence on imported fuel amid growing local refining capacity.

Explaining why fuel importation surged in November, the NMDPRA disclosed that low supply was recorded in September and October 2025, below the national demand threshold. In September, Dangote supplied 17.6 million litres per day, while 22.1 million litres per day were imported at the same time.

Dangote’s daily supply dropped to 17.1 million litres in October, while importers supplied 28.9 million litres per day. Consequently, import licences were granted, especially to boost national stock levels to meet the peak demand period of end-of-year festivities.

Imports by the NNPC, tagged the supplier of last resort, increased in November to build inventory and further guarantee supply during the peak demand period. It was also stated that “12 vessels were programmed to discharge in October but spilled into November 2025.”

Marketers speak

In an interview with our correspondent, oil marketers blamed the import surge on the dormant state of NNPC’s Port Harcourt, Warri, and Kaduna refineries. According to them, the Dangote refinery has been doing enough to ramp up production, and its supplies would have been augmented by the NNPC refineries.

Speaking with Sunday PUNCH, the National Publicity Secretary of IPMAN, Chinedu Ukadike, regretted that Nigeria is still importing petrol despite efforts to boost local refining capacity. According to Ukadike, the Petroleum Industry Act stipulates that there would be no need for importation once the country can produce enough fuel locally.

“If you look at the PIA, once the country is producing at the optimal level, there is no need for importation. By the PIA, if the country is producing sufficiently for the needs of the local market, I know the NMDPRA will not have issued licences.

“But what made NMDPRA issue licences was that they had also looked at the volume of production. So, instead of it causing unnecessary scarcity, and there are people who also want to import and sell within the range of the local refinery’s price, NMDPRA can issue import licences. And if they have done that, it is for the interest of the country, because you also know that once there is a scramble for petroleum products, there is an increase in price. That one is not in doubt, and it will also force unnecessary inflation on the masses,” he said.

Ukadike said the need for importation arose because the NNPC refineries are not working. “The NNPC refineries are not working; they never worked, and now they are not yet working. So, to cushion the effects of those lapses and the quest or struggle for petroleum products that will necessarily increase the prices, NMDPRA has to step in to do that importation,” he said.

Reacting to the NNPC’s plan to get technical partners for the refineries instead of selling them, Ukadike said implementation is key. “Even if they sell the refineries, it is still human beings who will operate them.

“They are not going to come from the moon. All the refineries are looking for good technicality, commitment, and transparency, not only in terms of administration but also in terms of the operational system. Nigeria is good at what I call policymaking, but when it comes to implementation, that is where we are lacking. So, I am talking positively. The issue of implementation should be worked on,” he advised.

State of emergency

The IPMAN spokesperson urged President Bola Tinubu to declare a state of emergency on the three refineries so they can complement Dangote and other modular ones.

“Mr President should declare a state of emergency on these refineries so they can complement private ones. It will help to regulate prices and make sense of this deregulation process, because competition drives deregulation. It will stabilise our economy and strengthen the currency.

“By declaring a state of emergency, the four refineries will be at the front burner. Everything about the refinery will be given utmost attention until it is achieved. And anybody dealing with the refineries will know that the government has prioritised it, and they will not be able to mess up,” Ukadike said.

In an interview, PETROAN President, Billy Gillis-Harry, also stated that if the NNPC refineries were working, there might not be any need for petrol importation.

“It goes without saying that if other refineries are working, if the Port Harcourt, Warri, and Kaduna refineries are working, and other refineries such as the Azikel refinery that’s going to be producing PMS are working, we should certainly not have a very high import bill.

“But the wheels of the economy must be oiled, and petroleum products are the ones that do that. So, we have to be certain that we have the elements of how to work around the corner,” Gillis-Harry said.

He added that imports would reduce with sufficient local production, asking the government to up its game. “If there is sufficient in-country production, imports will reduce. The government should up its game and get these refineries up and running,” he stated.

Our correspondent recalls that the President of the Dangote Group, Alhaji Aliko Dangote, once said the government refineries might never work again, but the new Group Chief Executive of the NNPC, Bayo Ojulari, said the plants would work again. Ojulari also rejected calls to sell off the facilities.

Calls for the privatisation of the refineries intensified following the shutdown of the 60,000-barrel-per-day Port Harcourt refinery in May this year, six months after it was declared operational.

The Warri refinery was also shut down one month after the former GCEO of the NNPC, Mele Kyari, declared it open in December 2024. The Manufacturers Association of Nigeria said the refineries were a drain on the country’s economy, calling on the Federal Government to sell them off.

The PUNCH reports that the Federal Government has consistently expended resources on the refineries, which became moribund many years ago. It was gathered that $1.4bn was approved for the rehabilitation of the Port Harcourt refinery in 2021, $897m was earmarked for Warri, and $586m for the Kaduna refinery.

N100bn was reportedly spent on refinery rehabilitation in 2021, with N8.33bn monthly expenditure. A total of $396.33m was allegedly spent on turnaround maintenance between 2013 and 2017. Despite all the financial allocations, the refineries remain unproductive as of the time of this report.

Recently, Ojulari said the company was assessing the operational and commercial viability of its three refineries to determine whether to overhaul or repurpose them for enhanced efficiency and profitability.

According to him, the ongoing technical and commercial review is part of a broader plan to reposition the refineries as sustainable, revenue-generating assets that can meet Nigeria’s fuel demand and align with international operational standards.

He stated that the review marks the beginning of a new era in Nigeria’s refining sector. According to Ojulari, NNPC Limited is currently in the “Technical and Commercial Review” phase, aimed at assessing the operational state of all three refineries and determining whether to upgrade or repurpose the facilities for optimal performance and long-term sustainability.

He revealed that the next step in the company’s refinery rehabilitation journey would involve NNPC engaging Technical Equity Partners with proven track records in operating world-class refineries.

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