Key points
- Nigeria’s average daily petrol imports rose 234 per cent between May and July, according to CPPE.
- The increase occurred alongside a decline in domestic PMS supply during the period.
- The centre wants petrol imports approved only where verified domestic supply gaps exist.
Main story
The Centre for the Promotion of Private Enterprise (CPPE) has questioned the sharp increase in Nigeria’s petrol imports at a time when the country’s refining capacity is expanding.
In a policy brief issued on Sunday, the centre said average daily imports of Premium Motor Spirit (PMS) climbed from 5.9 million litres in May to 19.7 million litres in July, representing a 234 per cent increase over the period.
Dr Muda Yusuf, Chief Executive Officer of CPPE, said the development raised concerns about the growing role of imported petrol in the domestic market as local refining capacity improves.
The centre said the share of imported PMS in total receipts increased from 12.4 per cent in May to 43.3 per cent in July.
This occurred as domestic PMS supply moved in the opposite direction, falling from 41.5 million litres per day in May to 32.5 million litres in June and 25.8 million litres in July.
CPPE said the figures warranted closer scrutiny because Nigeria was simultaneously recording developments in domestic refining.
The centre acknowledged that imports could remain necessary when local refineries experience disruptions, demand rises unexpectedly, products fail to meet required specifications or additional stocks are needed.
It, however, argued that imports should not become a substitute for local production where domestic refiners have the capacity to supply the market competitively.
CPPE consequently called for a review of the process used by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to approve petroleum product imports.
It proposed that import licences should be based on verifiable evidence showing that local refiners cannot supply the quantity or quality required by the market at competitive prices.
The centre also recommended monthly publication of key market information, including refinery production, inventories, consumption levels, imports, exports and available stocks.
It said such disclosure would make it easier to determine when imports were genuinely required.
CPPE further proposed limiting the duration of import permits and establishing clearly defined triggers for emergency imports, alongside tighter monitoring of approved shipments.
The centre warned that excessive reliance on imported petrol could reduce the utilisation of Nigerian refineries, weaken incentives for further investment and increase pressure on foreign exchange.
It added that continued import dependence could also shift employment and economic opportunities that could otherwise be generated within the domestic petroleum value chain.
CPPE cited developments at the Dangote Refinery, which reported a test run above 700,000 barrels per day in June, as evidence of the expanding capacity available within the country.
It also referenced NMDPRA’s report of 99.12 per cent average capacity utilisation by domestic refineries in April.
The centre said the objective should not be to exclude imports or shield inefficient refineries from competition, but to ensure that imported products complement rather than undermine local production.
It proposed a market approach centred on prioritising domestic supply while retaining imports as a mechanism for covering demonstrated shortages.
The issues
The sharp increase in petrol imports alongside declining domestic PMS supply has raised questions about how Nigeria is balancing imported products with growing local refining capacity.
CPPE’s position is that imports have a legitimate role where domestic supply is insufficient, but approvals should be based on transparent evidence of actual shortages.
What’s being said
“Imports should serve as a tool for addressing genuine supply gaps rather than displacing adequate local production.” — Centre for the Promotion of Private Enterprise
“Domestic supply first, competition always, imports only for verified gaps.” — Centre for the Promotion of Private Enterprise
What’s next
CPPE wants NMDPRA to introduce a more transparent system for approving petrol imports, including verified supply-gap assessments, monthly market data, time-limited permits and emergency import triggers.
Bottom line
CPPE says the surge in petrol imports despite increased domestic refining capacity could undermine Nigeria’s refining ambitions and has called for imports to be restricted to verified supply gaps while allowing domestic refiners to compete for available demand.
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