NNPC, Oil Marketers Spent N5.5tn on Petrol, Diesel Importation in Four Months

*Dangote ramps up production to 550,000 bpd

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Corporation (NNPC) Limited and select marketers spent over N5.5 trillion on the importation of Premium Motor Spirit (PMS) and diesel (AGO) between October 1, 2024 and January 31, 2025, reports have revealed.

The management of the Dangote Refinery is currently in court with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the NNPC and other oil marketers to compel the industry regulator to stop issuing import licences for fuel imports, despite in-country sufficiency.

THISDAY learnt yesterday that in the last four months, specifically between October 1, 2024 and January 31, 2025, the NNPC and some oil marketers spent over N5.5 trillion to import petrol and diesel, according to port documents.
However, the NNPC has always in defence, maintained that its decision on where it buys its products is dependent on economic forces, especially on the issue of pricing.

“While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability. If local supply is cost-effective, it will be preferred, but the same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import,”  the NNPC said recently, while defending its continuous importation of products.

But industry data analysed yesterday showed that a total of over 3.2 million metric tonnes of petrol and 980,485 metric tonnes of diesel were imported during this period covering October 2024 to January 2024.
With a conversion factor of about 1,341 litres per metric tonne for petrol and 1,176 litres per metric tonne for diesel, this is roughly 4.29 billion litres of petrol and over  1.153 billion litres of diesel. The total cost of these imports exceeded N5.5 trillion, based on the average landing cost, it was learnt.

Aside from the  NNPC, oil marketers listed as importers during the period include: BOVAS, Eternal Oil, AA Rano, Fatgbems, Matrix Energy, Ibeto, Swift, Raj, T-Time, Wosbab Energy, NorthWest, Sobaz, TS Logistics, Shorelink, Stockgap, MEJ, Nepal, Rainoil, AYM Shafa, among others.

It was further gathered that the imported products arrived through Lagos, Calabar, Warri, and Port Harcourt, despite the recent restarting of the Warri and Port Harcourt refineries, and the coming online of the $20 billion Dangote Petroleum Refinery.

Besides, sources close to the Dangote Refinery said that the company has ramped up production from the reported local consumption of 385,000 bpd to 550,000 bpd, enough to fully flood the Nigerian market and for export.
However, a huge volume of the crude oil still refined at the Dangote facility has mainly come from abroad as the national oil company has failed to meet the 385,000 bpd local supply agreement under the naira-for-crude deal.
Under the deal, the Dangote refinery is expected to pay for crude oil in naira and also sell the refined products to marketers in naira to eliminate currency and forex risks, while reducing the country’s reliance on the dollar for domestic transactions.

Although Nigeria’s crude oil production has increased, according to the authorities, feelers from the Dangote Refinery indicated that rather than increasing crude oil supply to the $20 billion facility, volumes have actually slumped.
For instance, in February 2025,  only four cargoes were allocated while for March, just two cargoes of 950,000 barrels each, that is 1.9 million barrels for the month, have been booked, representing an allocation of 61,290 bpd, far below the 385,000 bpd target.

Sources close to the Dangote Refinery, preferring to remain anonymous, said  the refinery continues to sell products to marketers in naira, absorbing logistics costs to ensure uniform pricing across the country.
“The refinery has generously assumed an equalisation status, a responsibility typically undertaken by the government. This has been met with enthusiasm by our partners, such as MRS, Heyden, and Ardova.
“The Petroleum Products Retail Outlet Owners Association (PETROAN), recently, entered into an agreement with the refinery to distribute its Premium Motor Spirit (PMS) nationwide at a uniform price across all its filling stations,” he said.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), it was learnt, allocated only 1.4 million barrels for March, with the NNPC receiving 17 cargoes (35 per cent) of the total production; five to Dangote refinery; two to Warri Refinery, and three to Port Harcourt refinery.
Furthermore, it was gathered that the remaining seven cargoes were allocated to various financiers as part of loan repayment, with no other local refineries receiving crude allocations for the period.

THISDAY was also told that despite the presidential order to sell crude oil in naira locally, transactions were still partially done using the greenback.

Subsequently, of the five cargoes allocated to the Dangote refinery, two are to be paid for using the local currency, while the remaining three will be settled in dollars from export proceeds.

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