Nigeria has stopped importing oil. On November 11, 2024, the NNPC announced that it would only source its oil from the Dangoté refinery. For over ten years, the country spent an average of 2,000 billion naira per month on imported fuel. Dangoté products have been sold from 1 October 2024. Despite a 20.34% reduction in the cost of supply, the price of petrol rose by 71.79% between August and November 2024, from N617 to N1,060 per litre. The end of imports is linked to the repayment of a USD 2.4 billion debt to international oil companies.
Nigeria has put a permanent end to its oil imports. On November 11, 2024, the Nigerian National Petroleum Company Limited, NNPC, confirmed that it would henceforth supply the local market with petroleum products exclusively from the Dangoté refinery. For more than a decade, Nigeria has spent an average of 2000 billion naira a month on fuel imports, or 24,000 billion naira a year on petrol and diesel.
The only way to improve access to petroleum products is to increase refining capacity in the country in order to insulate the economy from the volatility seen internationally. Unfortunately, our economy has suffered a great deal of damage as a result of its long-standing dependence on imports. Our currency has taken a hit. The economy has taken a hit. There will be a gradual recovery in the value of the currency.
Idoko ECHE, Oil technology expert
Hydrocarbons produced by the Dangoté refinery have been dispensed at the pump from October 1, 2024 in Nigeria. The Major Energy Marketers Association of Nigeria, MEMAN, has revealed that the projected cost of unloading petrol in Nigeria has fallen by 20.34% to N971.57 per litre in the last three months. Despite this decline, the retail price of petrol increased by N443, or 71.79%, from N617 per litre on August 1, 2024 to N1,060 per litre on November 8, 2024.
There is a misconception that sourcing from the Dangote refinery is supposed to bring down the price of petrol. The main reason why fuel prices continue to soar is the depreciation of the currency. The value of our currency has fallen by almost 65% over the last 18 months. This is the main factor determining the cost of petrol at the pump. I guarantee you that if today the naira appreciates by nearly 65%, you will see a drop of around 50% in the price of petrol at the pump.
Ayodele ADIO, Expert in economic strategies
The end of oil imports by the NNPC follows the settlement of a USD 2.4 billion debt owed to international oil companies operating in Nigeria. At the same time, the Independent Petroleum Marketers Association of Nigeria, IPMAN, has announced the forthcoming purchase of USD 20 billion worth of petroleum products from the Dangoté refinery.