NNPC, Marketers Spend Over N5.5 Trillion on Fuel Imports Amid Dangote Refinery Dispute

Naija247news reports that the Nigerian National Petroleum Corporation (NNPC) Limited and select oil 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, despite Nigeria’s increasing local refining capacity.

Meanwhile, the Dangote Refinery is locked in a legal battle with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPC, and other oil marketers over fuel importation. The refinery is seeking a court order to halt the issuance of fuel import licenses, arguing that local production is sufficient to meet domestic demand.

Fuel Import Data and Costs

Documents from Nigerian ports reveal that during the four-month period, the NNPC and several oil marketers imported a staggering volume of fuel:
• 3.2 million metric tonnes of petrol
• 980,485 metric tonnes of diesel

With conversion factors of 1,341 liters per metric tonne for petrol and 1,176 liters per metric tonne for diesel, this translates to:
• 4.29 billion liters of petrol
• 1.153 billion liters of diesel

Based on average landing costs, these imports amounted to N5.5 trillion.

NNPC’s Defense on Fuel Imports

Defending its decision to continue fuel imports, the NNPC insists that its supply strategy is based on economic viability rather than a fixed preference for local or foreign purchases.

“NNPC prioritizes sourcing products from domestic refineries, but this is contingent upon economic viability. If local supply is cost-effective, it will be preferred. The same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import,” the corporation stated.

Oil Marketers Involved in Imports

Aside from the NNPC, key oil marketers that imported fuel during this period included:
• BOVAS, Eterna Oil, AA Rano, Fatgbems, Matrix Energy, Ibeto, Swift, Raj, T-Time, Wosbab Energy, NorthWest, Sobaz, TS Logistics, Shorelink, Stockgap, MEJ, Nepal, Rainoil, and AYM Shafa.

The products arrived through Lagos, Calabar, Warri, and Port Harcourt ports, even as the Warri and Port Harcourt refineries resumed operations and the Dangote Petroleum Refinery ramped up production.

Dangote Refinery Struggles with Crude Supply

Despite claims of in-country sufficiency, the Dangote Refinery has struggled to obtain adequate local crude supply. Sources at the refinery reveal that while it has scaled up production to 550,000 barrels per day (bpd)—exceeding the reported 385,000 bpd required for local consumption—a large portion of its crude oil is still being sourced from international suppliers.

Under the naira-for-crude agreement, the NNPC was expected to supply 385,000 bpd to Dangote Refinery, with payments and refined products transacted in naira. This was intended to reduce forex dependency and stabilize domestic fuel prices. However, despite increased national crude production, NNPC has not met its crude supply commitments.

In February 2025, only four crude oil cargoes were allocated to Dangote, and for March 2025, just two cargoes of 950,000 barrels each (a total of 1.9 million barrels) were assigned—equivalent to a mere 61,290 bpd, far below the 385,000 bpd target.

NNPC’s Crude Allocation and Dollar Transactions

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that for March 2025, crude oil allocations were distributed as follows:
• NNPC received 17 cargoes (35% of total production)
• Dangote Refinery received 5 cargoes
• Warri Refinery received 2 cargoes
• Port Harcourt Refinery received 3 cargoes
• 7 cargoes were allocated to financiers for loan repayment

Meanwhile, despite a presidential directive to sell local crude oil in naira, industry insiders told Naija247news that some transactions are still being settled in US dollars.

For March 2025, of the five cargoes allocated to Dangote, only two will be paid for in naira, while the remaining three must be paid for in dollars from export proceeds.

Dangote Refinery Absorbing Costs to Stabilize Prices

Despite these challenges, sources close to Dangote Refinery reveal that the company has absorbed logistics costs to ensure uniform pricing nationwide. The refinery has taken on a quasi-equalization role—a function typically performed by the government—to stabilize pump prices across Nigeria.

Key oil distributors such as MRS, Heyden, and Ardova have partnered with the refinery, while the Petroleum Products Retail Outlet Owners Association (PETROAN) recently signed a deal to distribute Dangote’s PMS at a uniform price across all its stations.

What Lies Ahead?

As fuel imports continue despite increased domestic refining capacity, Nigeria’s oil sector remains entangled in policy disputes, supply chain inefficiencies, and regulatory challenges. The legal battle between Dangote Refinery, NNPC, and regulatory bodies is likely to determine the future of Nigeria’s fuel importation policy and whether the country can achieve true energy self-sufficiency.

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Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.