Domestic oil refiners say Nigeria has sufficient refining capacity to meet its petrol needs and significantly reduce fuel imports, provided longstanding challenges around crude oil supply and financing are addressed.
The Crude Oil Refiners Association of Nigeria (CORAN) said its members, including the Dangote Petroleum Refinery, are capable of supplying the local market with Premium Motor Spirit (PMS) without relying heavily on imports. The group spoke against the backdrop of official data showing that petrol imports still accounted for the bulk of Nigeria’s fuel consumption in 2025.
Figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicate that Nigeria consumed about 18.97 billion litres of petrol in 2025. Oil marketing companies imported approximately 11.85 billion litres, representing about 62 per cent of total consumption, while domestic refineries supplied around 7.54 billion litres.
Despite the commencement of petrol production at the 650,000-barrels-per-day Dangote refinery and increased activity among modular refineries, imported fuel remained the dominant source of supply throughout the year.
Reacting to the data, CORAN’s Publicity Secretary, Eche Idoko, said the figures did not reflect the true capacity of local refineries.
He explained that most facilities are operating below capacity due to inadequate access to crude oil rather than technical or operational limitations.
According to him, several modular refineries produce only a fraction of their installed capacity, while some are forced to shut down intermittently because of inconsistent crude supply. Even large-scale facilities such as the Dangote refinery, he said, have at times operated below full capacity for the same reason.
Idoko added that crude supply uncertainties have also slowed down refinery projects under construction, as financiers demand firm guarantees before releasing funds.
He expressed optimism that locally refined products could overtake imports in 2026, noting that the Dangote refinery alone now produces about 50 million litres of petrol daily. Nigeria’s peak daily consumption, he said, is only slightly higher, suggesting that improved feedstock availability could close the gap.
Beyond crude supply, CORAN raised concerns over access to finance. Idoko said local banks have provided little support for refinery development and called on the government to establish a refinery infrastructure development fund similar to incentives already available in the gas sector.
The association also urged the NMDPRA to improve its data-gathering methods, recommending independent verification of refinery output and stock levels instead of relying largely on truck-out figures, which may not reflect actual production.
Meanwhile, sources at the Dangote refinery said the facility has sufficient petrol to supply the domestic market while exporting to other countries. They maintained that local demand could be fully met if regulatory processes aligned with production realities.
Dangote Group President, Aliko Dangote, has repeatedly criticised fuel import licences, arguing that continued imports undermine local refining and investment.
In December, the refinery reduced petrol prices nationwide during the festive period, a move Dangote said was aimed at easing costs for consumers and discouraging imports, despite resulting financial losses for the company.
Industry data shows that petrol imports declined toward the end of 2025, while supplies from the Dangote refinery increased. The refinery’s management recently disclosed that it has begun night-time loading operations to sustain daily deliveries of more than 50 million litres of petrol nationwide.
