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FG Confirms Local Refineries Fall Short of Meeting 50% Fuel Demand

February 20, 2025
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The Federal Government has disclosed that Nigeria’s three operational refineries, despite having a combined refining capacity of 985,000 barrels per day, are currently supplying less than 50% of the country’s daily petrol consumption. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that the shortfall is being bridged through fuel importation to sustain national supply.

Speaking at a press conference in Abuja on Wednesday, NMDPRA Chief Executive, Farouk Ahmed, represented by the Executive Director, Distribution System, Storage, and Retailing Infrastructure, Ogbugo Ukoha, noted that Nigeria’s daily petrol consumption now stands at 50 million litres, down from 66 million litres per day before the removal of the petrol subsidy. He further explained that without fuel imports, the country would be facing severe shortages, stressing that none of the refineries have imported petroleum products this year.

Nigeria’s refining sector has seen some progress in recent years. In 2024, the 210,000 barrels per day Port Harcourt refinery and the 125,000bpd Warri refinery resumed operations after being inactive for decades. The 650,000bpd Dangote Refinery also commenced operations, raising hopes that domestic fuel production would significantly reduce dependence on imports. However, despite claims by refinery officials that production is ongoing at advanced levels, Ahmed’s statement suggests that Nigeria remains heavily reliant on imports to meet fuel demand.

Ukoha emphasized that while domestic refining capacity has improved, it remains insufficient to meet demand, especially considering the government’s withdrawal of the petrol subsidy, which contributed to a reduction in daily fuel consumption. He pointed out that between January and February 2025, domestic refineries have supplied less than 50% of the national fuel requirement, with the shortfall being covered by imported products.

Highlighting the importance of fuel imports, Ukoha stated that private oil marketing companies (OMCs) are responsible for bringing in refined petrol to make up for the deficit. He warned that without these imports, Nigeria could face fuel shortages, adding that regulators are closely monitoring supply levels to prevent disruptions.

He also addressed concerns regarding fuel quality, assuring Nigerians that all imported petroleum products meet the required standards set by the Standard Organisation of Nigeria (SON) and the Petroleum Industry Act (PIA) 2021. He dismissed claims circulating on social media regarding poor fuel quality, insisting that only products that meet regulatory specifications are approved for distribution.

The government’s confirmation of continued reliance on fuel imports despite local refining efforts underscores the persistent challenges in Nigeria’s energy sector. While the operational refineries have helped reduce import dependence to some extent, the country is still far from achieving full self-sufficiency in fuel production.

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