Petrol Imports Surge 207% as IPMAN Rejects Licences
Nigeria’s daily petrol imports surged by 207 per cent in June, reversing months of steady progress toward domestic energy self-sufficiency. Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveals that daily foreign fuel receipts jumped to 18.1 million litres, up from 5.9 million litres in May. The massive influx of offshore fuel translates to an estimated monthly import volume of 543 million litres. This aggressive return to foreign suppliers occurred as domestic refining output fell sharply by nearly 22 per cent. The structural supply shift has immediately renewed severe pressure on the struggling naira as marketers seek foreign exchange.
The sudden spike in offshore procurement has triggered fierce resistance from the Independent Petroleum Marketers Association of Nigeria. National officials from the trade body have publicly condemned the state regulator for continuing to approve fuel import licences. Association leaders argue that flooding the local market with foreign fuel deliberately undermines massive domestic investments like the 650,000 barrels-per-day Dangote Refinery. The group urged the Federal Government to support local refining capacity rather than draining scarce foreign reserves on imported products. Marketers warn that prolonged import dependence threatens national energy security.
The downstream regulator defended the offshore purchases, describing them as an essential buffer to maintain steady nationwide inventory levels. Officials note that overall nationwide petrol availability actually improved to 50.6 million litres per day in June, up from 47.4 million litres in May. The heavy reliance on imported cargoes comfortably filled the commercial gap left by falling domestic refinery output. Local refinery contributions to the national grid dropped from 41.5 million litres daily to 32.5 million litres within the same 30-day window. State administrators insist that relying on a single local supply source risks creating an unhealthy commercial monopoly.
The contraction in domestic fuel output mirrors a volatile operational period for local refining entities across the federation. While the regulatory authority reported that local refineries hit an impressive average capacity utilisation rate of 101 per cent, overall crude oil receipts fluctuated wildly. Major local refiners continue to battle significant structural friction regarding stable domestic feedstock allocations under existing state agreements. The ongoing supply complications recently forced the massive Dangote facility to temporarily pivot toward pricing its products in US dollars to recover costs. This breakdown in the state naira-for-crude framework has forced independent buyers back onto the international market.
Despite the abrupt surge in foreign shipments, domestic refineries still remained the single largest contributor to the local fuel network. The 32.5 million litres pumped daily by local plants accounted for roughly 64 per cent of the total nationwide supply in June. Imported fuel bridged the remaining 36 per cent of the national consumption requirement, which rose slightly to 47.4 million litres per day. The combination of local refining and heavy imports successfully boosted the national fuel stock sufficiency buffer to nearly 20 days. Consumers enjoyed stable retail pricing at the pumps, shielding the broader economy from immediate scarcity shocks.
The evolving supply architecture underscores the volatile nature of Nigeria’s transition away from an import-dependent energy market. While domestic gas infrastructure projects like the Ajaokuta-Kaduna-Kano pipeline are near 94 per cent completion, the immediate fuel market remains vulnerable to currency fluctuations. Marketers remain highly sensitive to international price dynamics and the shifting economics of localized crude procurement. The state must now choose between enforcing stricter protectionist policies to shield domestic refiners or allowing open imports to guarantee short-term market liquidity. Achieving total energy independence will require far more than initial refinery construction.