Nigeria’s petrol imports surged in 2024, greater than doubling regardless of elevated home refining capability, highlighting the nation’s persistent reliance on imported gasoline.
The newest international commerce statistics report from the Nationwide Bureau of Statistics (NBS) revealed that petrol import prices rose by 105.3% to N15.42 trillion in 2024, up from N7.51 trillion in 2023.
This sharp improve got here at a time when expectations had been excessive for a decline in gasoline imports, following vital investments in native refining.
What the info says
- Petrol import prices have adopted a steep upward trajectory over the previous 5 years, reflecting each rising reliance on international provide and forex depreciation.
- In 2020, Nigeria spent N2.01 trillion on gasoline imports. By 2021, this determine greater than doubled, rising by 126.9% to N4.56 trillion, indicating a pointy improve in import dependence and international worth fluctuations.
- The upward development continued in 2022, with import prices leaping by 69.1% to N7.71 trillion, pushed by rising crude oil costs and Nigeria’s lack of ability to refine a good portion of its gasoline wants domestically.
- In 2023, petrol import expenditure recorded a marginal decline of two.6% to N7.51 trillion, suggesting a short lived easing, presumably because of elements akin to foreign exchange changes and decrease international oil costs.
- Nonetheless, 2024 noticed a 105.3% spike to N15.42 trillion, the very best on file. This dramatic surge will be attributed to the sharp 40.9% depreciation of the naira, which considerably inflated import prices in native forex phrases, even when dollar-denominated costs remained comparatively steady.
Import seemingly because of unmet home provide
Nigeria had anticipated a decreased reliance on imported gasoline with the graduation of operations on the 650,000 barrels-per-day Dangote Refinery and the continuing rehabilitation of state-owned refineries.
The Port Harcourt Refining Firm (PHRC), with a complete put in capability of 210,000bpd, lately restarted operations at its previous plant, which presently produces 60,000bpd.
Nonetheless, out there knowledge means that home refining stays inadequate to satisfy nationwide demand, necessitating continued large-scale imports.
Regardless of efforts to ramp up home refining capability, Nigeria stays closely reliant on imported gasoline because of delays in refinery ramp-up, provide chain inefficiencies, and chronic demand-supply imbalances, amongst different elements.
The nation’s vulnerability to international change fluctuations additional complicates its capacity to realize vitality self-sufficiency, because the rising value of petrol imports continues to pressure authorities funds and client buying energy.
The persistent improve in gasoline import payments affirms Nigeria’s continued vulnerability to international change volatility, international oil worth fluctuations, and delays in reaching vitality self-sufficiency by home refining.
What it is best to know
In December 2024, the Nigeria Nationwide Petroleum Firm Restricted (NNPCL) introduced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Firm (WRPC), which was authorised for rehabilitation in 2021 for $897 million.
- This announcement adopted stories that the Port Harcourt refinery’s 60,000 bpd part one had begun refining key fuels. Nigeria operates 4 nationwide refineries: one in Kaduna, one in Warri, and two in Port Harcourt.
- The refurbishment of those refineries, along with the operations of the Dangote refinery, was anticipated to cut back Nigeria’s importation of petroleum merchandise and make the nation fuel-independent.
- Nonetheless, the importation of refined merchandise continues on a big scale regardless of the rising variety of native refineries.
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