Emmanuel OchayiThe importation of Premium Motor Spirit (PMS), commonly known as petrol, has risen to 154 million litres weekly, as Nigeria continues to struggle with the Naira-for-Crude policy crisis. Seven vessels carrying imported fuel are expected to arrive at the country’s seaports between March 17 and March 23, highlighting the nation’s growing reliance on foreign supply despite efforts to boost local refining capacity.
A document from the Nigerian Ports Authority (NPA) shows that these vessels, transporting 115,000 metric tonnes of PMS, will berth at Lagos’ Tincan and Lekki Deep Seaports, as well as the Calabar Port in Cross River State. This development follows a drop in the landing cost of imported petrol to ₦797 per litre and the recent suspension of Naira-for-Crude transactions by the Dangote Petroleum Refinery.
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The suspension of the Naira-for-Crude deal, which allowed Dangote Refinery to purchase crude oil in the local currency, has disrupted domestic refining. The Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery were negotiating a new agreement, but talks stalled, forcing the refinery to halt sales in naira.
READ ALSO: Nigeria’s Oil Gamble: Will Dangote Refinery, NNPCL’s Naira-for-crude Deal Reshape Energy Market?
Domestic crude oil refiners have expressed concerns that the policy shift could frustrate local refining efforts. Eche Idoko, the National Publicity Secretary of the Crude Oil Refinery-Owners Association of Nigeria, said that ending the deal undermines Nigeria’s energy security.
“There are forces unhappy with Dangote Refinery’s ability to lower petrol prices. They are using monopolistic tactics to push for more imports instead of supporting local refining,” he said.
Dependence on Fuel Imports Continues
Despite Nigeria’s push for self-sufficiency in fuel production, imports remain a significant part of the supply chain. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently revealed that operational refineries contribute less than 50% of the country’s daily fuel consumption, making imports necessary to fill the gap.
The latest NPA data confirms this trend, showing the consistent arrival of imported fuel through different ports. The vessels carrying the 154 million litres of petrol will arrive at various locations throughout the week.
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On March 17, two vessels carrying 40,000 metric tonnes berthed at Tincan and Calabar seaports.
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A Watson vessel transporting 20,000 metric tonnes arrived at the Ecomarine terminal on March 20.
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The Binta Saleh ship, carrying 5,000 metric tonnes, was scheduled to dock at Tincan Port on March 21.
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Two more vessels, each transporting 15,000 metric tonnes, are set to arrive at Calabar Port on March 22 and March 23.
Meanwhile, Dangote Refinery received 654,766 metric tonnes of crude oil within the same period, reflecting ongoing local refining efforts despite the challenges with the Naira-for-Crude agreement.
Petrol Prices at Depots on the Rise
The increase in fuel imports has not stabilised the price of petrol. Depots across the country continue to adjust their pricing, pushing up the cost of fuel distribution.
Data obtained from depot operators on March 21 revealed the following price changes:
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Rainoil Depot raised its price from ₦835 to ₦860 per litre.
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MEN Depot also adjusted its price to ₦860 per litre, despite no sales the previous day.
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Pinnacle Depot increased its price from ₦835 to ₦860 per litre.
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Aiteo and Nipco Depots adjusted their prices from ₦835 to ₦856 and ₦860 per litre, respectively.
These price changes suggest that fuel marketers are responding to uncertainties in the Naira-for-Crude policy, the ongoing reliance on imports, and fluctuations in international oil prices.
Future of Local Refining in Question
The return to large-scale fuel importation raises concerns about the future of Nigeria’s refining sector. Industry experts fear that without a clear policy to support local refiners, the country may continue to depend on imported fuel, making energy costs unpredictable.
Dangote Refinery was expected to reduce Nigeria’s reliance on foreign petrol. However, the ongoing crisis surrounding the Naira-for-Crude deal has complicated efforts to boost domestic fuel production. Until a resolution is reached, Nigerians may continue to see fluctuations in petrol supply and pricing.
As fuel imports rise to 154 million litres weekly, the Naira-for-Crude crisis remains unresolved, impacting local refining and depot pricing. The reliance on imports, despite Dangote Refinery’s capacity, raises concerns about Nigeria’s long-term energy security. Without a stable crude supply agreement, petrol prices may continue to rise, affecting businesses and consumers across the country.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
