Nigerian fuel traders are navigating a challenging landscape filled with unmet expectations. Despite proclamations made six months ago that the state-owned Port Harcourt and Warri refineries were ready for operation, traders still find themselves struggling to secure gasoline from these facilities. It raises an important question: How long can a nation, rich in resources, rely on aging infrastructure?
- Advertisement -
This situation has led traders to maintain their dependence on imports and the privately-owned $20 billion Dangote Refinery, which is currently the largest refinery in Africa. According to a report from Reuters, the added strain on fuel supply underscores a persistent issue in Nigeria’s energy landscape. Given this scenario, one must wonder: What steps can be taken to revitalize these crucial assets?
Nigeria’s long history with fuel shortages paints a sobering picture. Over the last decade, the nation has poured a staggering ₦11.35 trillion (approximately $25 billion) into attempts to repair its three aging and malfunctioning refineries. Despite these investments, the persistent issue of fuel scarcity seems as impenetrable as ever. Consider this: What would it take for a nation that prides itself on its oil reserves to become self-sufficient in fuel production?
Since 2021, Nigeria has allocated about $2.4 billion towards renovating two refineries in the Niger Delta, a strategic move aimed at minimizing reliance on imported fuel. However, delays in fully operationalizing these refineries continue to stymie local fuel supply. It’s a puzzling irony, isn’t it? How do we reconcile the wealth of resources Nigeria possesses with its current fuel-import predicament?
Despite the announcement that the first phase of refurbishment at the Port Harcourt refinery was completed in December 2024, traders remain exasperated. They claim to still be unable to access gasoline from both the Port Harcourt and Warri refineries, managed by the state-owned Nigerian National Petroleum Corporation (NNPC). Here’s a vivid illustration: Imagine waiting for the much-anticipated golden ticket, only to find that the door remains closed. What can fuel traders do to navigate this predicament, while also feeding the desperate needs of consumers?
Soaring Imports
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which represents over 6,700 fuel stations, members find their operations closely tied to fuel imports and the outputs from the Dangote Refinery, which has a capacity of 650,000 barrels per day but has not yet achieved full production. It’s a classic catch-22: Relying on imports while trying to ramp up homegrown production feels like walking on a tightrope, doesn’t it?
Official data reveals that by March 2025, the Port Harcourt refinery—once Nigeria’s largest—had produced no gasoline at all. To put this in perspective, the Dangote Refinery managed to produce 20.6 million liters of petrol during the same month, while imports provided an additional 25.19 million liters, effectively meeting 92% of Nigeria’s daily gasoline demand of 50 million liters. Isn’t it striking how a single refinery can serve as a lifeline while others languish unused?
The overreliance on imports is increasingly alarming. In 2024, Nigeria spent ₦15.4 trillion ($9.63 billion) on petrol imports—more than double the ₦7.51 trillion spent in 2023, according to the National Bureau of Statistics (NBS). It seems that while local refineries remain inactive, the financial burden continues to amplify. Authorities are hopeful that reinstating local refinery operations will lead to a significant reduction in these skyrocketing costs. But this raises an essential dilemma: Can we truly depend on these facilities when their reliability has been historically questionable?
The road ahead is riddled with challenges, but it is also paved with the potential for growth and transformation. The call to action is pressing. Nigeria must address its reliance on imports while enhancing the efficiency of its existing refineries. As the nation embarks on this journey, it invites an important conversation on energy independence: How can Nigeria redefine its future in an oil-rich landscape? Can innovation and determination reshape its narrative from one of dependence to self-sufficiency?
As always, solutions won’t appear overnight. Yet, the blend of strategic investment, rigorous management, and a commitment to transparency could serve as the keys to unlocking Nigeria’s potential. After all, as the saying goes, “Sometimes the best opportunities come disguised as challenges.”
Edited By Ali Musa
Axadle Times International – Monitoring
