Economy News

Local Refineries Meet 50% of Nigeria’s Fuel Demand in February

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that local refineries successfully met 50% of the nation’s petroleum consumption needs in February 2025. The statement, made by NMDPRA Chief Executive Engr. Farouk Ahmed during a press briefing in Abuja on Wednesday, February 19, highlights a significant milestone in Nigeria’s push toward energy self-sufficiency.

Speaking to journalists, Ahmed, represented by Executive Director of Distribution Systems, Storage, and Retailing Infrastructure, Ogbugo Ukoha, revealed that the country’s daily consumption of Premium Motor Spirit (PMS), or petrol, averages 50 million liters. Of this, domestic refineries—including the recently revived Port Harcourt and Warri refineries, alongside the privately-owned Dangote Refinery—contributed half, with the remaining shortfall bridged through imports by Oil Marketing Companies (OMCs).

“This is a testament to the strides we are making in local refining capacity,” Ukoha said. “Between January and February 2025, local refineries have consistently supplied less than 60% in January and precisely 50% in February of the national requirement. The balance has been sourced through imports, ensuring no scarcity disrupts supply nationwide.”

The NMDPRA’s disclosure comes amid ongoing efforts to reduce Nigeria’s decades-long reliance on imported fuel, a dependency that has strained foreign exchange reserves and fueled economic debates. The operational resurgence of state-owned refining assets, coupled with the Dangote Refinery’s output, has been hailed as a game-changer, though the 50% benchmark underscores that challenges remain in fully meeting domestic demand.

Ukoha clarified that none of the OMCs owning local refineries, such as the Nigerian National Petroleum Company Limited (NNPCL), have imported PMS in 2025. “The shortfall is being addressed by other OMCs, in line with the Petroleum Industry Act (PIA) 2021, which allows for imports to prevent shortages,” he noted. He credited this strategy for the absence of fuel queues during the recent Yuletide season, a period typically marked by supply hiccups.

Addressing concerns over fuel quality, Ukoha dismissed social media claims of substandard products as “bogus and unscientific.” He assured Nigerians that all petroleum products, whether locally refined or imported, meet stringent specifications set by the Standards Organisation of Nigeria (SON) and the PIA. “From load port to discharge, accredited laboratories test every batch, issuing certificates of quality before distribution,” he explained, reinforcing the agency’s commitment to transparency and compliance.

The NMDPRA’s update has sparked mixed reactions. Energy analyst Adeola Yusuf described the 50% local contribution as “progress worth celebrating,” but cautioned that Nigeria’s refining capacity—totaling 985,000 barrels per day across Port Harcourt (210,000 bpd), Warri (125,000 bpd), and Dangote (650,000 bpd)—should aim higher. “We’re still importing over half our petrol despite this potential. Operational inefficiencies or distribution bottlenecks need urgent attention,” he said.

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