Mkpoikana Udoma
Port Harcourt — Nigeria’s over reliance on imported Premium Motor Spirit, PMS, has persisted with over 20.30 billion litres imported in 2023, according to the National Bureau of Statistics, NBS.
Despite efforts to boost local refining capacity, the country’s PMS importation decreased by only 13.77% from 23.54 billion litres in 2022.
In 2023, PMS truck out stood at 20.22 billion litres, indicating a 16.96% decrease relative to 24.35 billion litres recorded in 2022.
For Automotive Gas Oil, AGO, data from NBS said 4.94 billion litres were imported in 2023, indicating an increase of 23.66% compared to 4.00 billion litres in the previous year.
Also, 109.39 million litres were locally produced in 2023, higher, compared to 102.47 million litres reported in 2022, which represents a 6.76% growth rate.
About 69.71 million litres of Household Kerosene were locally produced in 2023 compared to 44.68 million litres in 2022, indicating a growth rate of 56.02% over the period.
The NBS data raises concerns about Nigeria’s continued dependence on imported fuel, instead of initiatives and efforts to enhance local refining capacity.
Industry experts argue that addressing the country’s refining challenges is crucial to reducing importation and promoting energy self-sufficiency.
An Energy Analyst and Environmentalist, Mr. Fyneface Dumnamene Fyneface, said Nigeria’s 2023 fuel importation figures – 20.30 billion liters of PMS and 4.9 billion liters of AGO – underscore the urgent need for domestic refining capacity.
Fyneface expressed optimism that that the imminent arrival of the Dangote Refinery and other local refineries will significantly boost domestic production, reducing reliance on imports.
He said, “Importing refined products while exporting crude oil is counterproductive. It’s making the naira weaker, and we’re losing billions of dollars through capital flight. Refining locally will add value to Nigeria’s petroleum resources, retaining those billions domestically.
“Refining locally will reduce importation, create jobs, strengthen the Naira, and stem capital flight. When we export crude oil and import refined products, we’re creating jobs in other countries, not Nigeria. The finished products are sold back to us, leaving our petroleum resources in those countries.”
Fyneface further emphasized that Nigeria must prioritize local refining to harness its petroleum resources effectively and make the Naira stronger.
“For there to be a reduction in the importation of PMS and AGO in 2024 to 2025 going forward Nigeria must give all the necessary support to private refinery owners in the country from Dangote to others who have more modular refineries.
“There should also be licensing of illegal refineries in the Niger Delta through the process we call the Presidential Artisanal Crude Oil Refining Development Initiative, PACORDI, to contribute to the energy mix and product sufficiency for Nigeria,” Fyneface said.
