Elsie UdohNigeria’s petrol import bill surged by 105.3% in 2024, reaching a record-breaking ₦15.42 trillion.
This sharp increase, despite efforts to ramp up local refining, has far-reaching consequences for the economy and citizens.
Join our WhatsApp ChannelLet’s break down exactly how the rising petrol imports affect Nigeria’s economy and even your wallet.
How Rising Petrol Imports Affect Nigeria’s Economy and Your Wallet
1. Depleting Foreign Reserves
Every time Nigeria imports petrol, it pays in US dollars, reducing the country’s foreign reserves.
When reserves drop, the Central Bank struggles to stabilise the naira and this makes it weaker against foreign currencies.
This means more expensive imports, including food, electronics, and even school fees for Nigerians schooling abroad.
2. Naira Depreciation
The more dollars Nigeria needs to buy petrol, the more the naira loses value. This is the major reason why the prices of everyday goods keep skyrocketing.
A weaker naira means it takes more money to buy the same things, making life harder for average Nigerians.
3. Higher Fuel Prices
Since Nigeria depends on imported petrol, global oil price fluctuations directly hit our local pump prices. When the cost of importing fuel rises, petrol stations increase prices.
The effect on you is that when you take public transport, you’ll feel it in higher fares, while if you own a car, your fuel budget will increase.
4. Rising Inflation
Petrol is the backbone of transportation and production in Nigeria so when it gets expensive, businesses pass the cost to consumers.
This makes everyday shopping more expensive and household budgets are stretched.
5. Government Revenue Strain
Even after subsidy removal, the government still plays a role in managing petrol importation.
Rising import costs mean more spending on fuel, leaving less for education, healthcare, and infrastructure.
This explains why roads remain bad, schools lack facilities, and hospitals struggle with funding.
READ ALSO: Naira-for-crude Deal: Dangote Refinery Got Over 48 Million Barrels – NNPCL
6. Slow Local Refining Growth
Despite promises of refinery repairs and the Dangote refinery coming online, Nigeria still imports most of its petrol.
The result of this is spending trillions on imports. As long as this persists, it remains difficult to save forex, create jobs, and make fuel more affordable.
7. Increased Transportation Costs
The rising petrol prices hit transport operators first, causing a hike in public transport and Uber/Bolt fees. They pass these costs to passengers, making it more expensive to move around.
If you live in Lagos or Abuja, you’ve likely noticed how bus fares keep increasing, affecting your daily budget.
8. Reduced Business Profit Margins
Businesses that rely on petrol generators, like hair salons, frozen food sellers, and even barbers, are seeing their costs skyrocket.
Some shut down while others increased their prices. Either way, customers feel the strain of this.
9. Employment Challenges
If Nigeria refined its own petrol, thousands of jobs would be created in refining, logistics, and distribution.
Instead, money flows abroad while Nigerians struggle with unemployment. More local refining would mean more jobs, lower fuel costs, and economic growth.
10. Increased Cost of Living
Higher transport fares, expensive food, rising electricity costs—everything is connected to petrol prices.
When petrol imports rise, so do living expenses, making it harder for many Nigerians to make ends meet.
Final Thoughts
Nigeria’s growing reliance on petrol imports shows deep structural issues in the energy sector.
To fix this, the government must prioritise local refining, boost forex reserves, and implement policies that reduce dependency on imports.
Until then, Nigerians will continue feeling the pressure of rising fuel costs.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lagos State University.
