Recently, Nigeria has seen a significant increase in petrol imports, leading to ongoing disputes between oil marketers and the Dangote Petroleum Refinery. Over nine days, more than 496 million litres of petrol were imported into the country — a substantial volume indicating a shift in the market dynamics.
This surge follows a period when Dangote’s $20 billion refinery struggled with operational issues and was reportedly “fighting for survival,” as voiced by the refinery’s owner, Aliko Dangote. Despite increasing production, major marketers have been hesitant to buy in bulk from the refinery, citing unfavourable pricing models and operational terms as key factors.
Industry data shows that during this period, about 370,000 metric tonnes of petrol were discharged at various Nigerian depots, mostly in Lagos, Warri, and Calabar. This heavy importation, possibly the highest weekly volume this year, points to declining confidence in local refining and the rising appeal of importing fuels directly.
Marketers are reportedly turning to imports via West African ports like Lome in Togo, taking advantage of lower freight costs and tax incentives, especially as Nigeria pushes for transactions in naira. Cost factors also suggest importers might be spending around N436 billion on these imports within just nine days.
Stakeholders believe that the sharp import increase reflects deeper issues in the downstream industry: the pricing strategy of Dangote’s refinery, difficult economic conditions, and the impact of reduced refinery output due to unscheduled maintenance. Many traders prefer importing because it can be more profitable in the current environment, even amid foreign exchange challenges.
Industry experts warn that this situation signals potential trouble in the local fuel market. Marketers suggest that the exaggerated importation might be a sign that Dangote’s refinery isn’t supplying enough or offering competitive prices, leading to a potentially unsustainable reliance on imports and fueling a price war.
In summary, Nigeria’s fuel market is experiencing turbulence, with increased imports and dissatisfaction pointing to underlying structural issues that could impact fuel availability and prices shortly
