Despite Nigeria’s push for self-sufficiency in refining petroleum products, petrol blended in Malta continues to enter the country, raising concerns over fuel quality and regulatory enforcement. Energy expert Mr. Kelvin Emmanuel has highlighted how Nigeria still imports up to 180,000 metric tonnes of petrol monthly, despite the operational status of the Dangote Refinery and government-owned refineries.
Dangote Refinery Cuts Price, But Imports Persist
In a bid to stabilise the market, Dangote Refinery recently slashed its ex-depot petrol price from ₦955 to ₦890 per litre, effective 1st February 2025. According to Dangote’s Chief Branding and Communication Officer, Anthony Cheijina, the move is part of a strategic adjustment responding to global energy trends.
However, despite this reduction and the expected output from Nigeria’s refineries, imported fuel still dominates the market. Between October and December 2024, the Nigerian National Petroleum Company (NNPC) and other importers brought in 3.8 billion litres of refined petrol, valued at approximately ₦3.6 trillion. Alarmingly, 35-40% of these imports were blended in Malta before being shipped to Nigeria.
Why Is Nigeria Still Importing Petrol?
The Petroleum Industry Act (PIA) 2021 mandates that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) withdraw import licences once domestic supply is sufficient. Yet, NMDPRA continues issuing these licences, arguing that Dangote Refinery alone cannot meet national demand.
This has led to legal disputes, with Dangote Refinery insisting that continued fuel imports violate the PIA’s Domestic Crude Supply Obligation (DCSO) policy. The refinery also questions why government-owned refineries in Warri and Port Harcourt, despite being refurbished, are still not significantly contributing to local supply.
Doubts Over Government-Owned Refineries
Although the government claims that the Warri and Port Harcourt refineries are operational, Emmanuel argues that there is little evidence to support this. He points out:
- The Warri Refinery lacks the capacity to refine petrol (PMS) due to the absence of a catalytic reforming unit.
- The crude oil pipeline supplying Warri has been vandalised, making it unclear how the refinery is receiving feedstock.
- No proof of Liquefied Petroleum Gas (LPG) recovery – a standard indicator of PMS production.
- NNPC recently imported 212 million litres of petrol in January 2025, raising further doubts over the claim that local refineries are meeting demand.
Fuel Quality Concerns
The PIA (Section 317, Subsection 11) mandates that imported fuel must not exceed 50 parts per million (PPM) of sulphur content. However, independent tests suggest that some imported fuel contains as much as 800 to 1,000 PPM, far above the legal limit.
Emmanuel argues that NMDPRA has failed to conduct third-party testing on fuel imported into Nigeria, putting millions of consumers at risk. While Dangote Refinery meets global standards and exports aviation fuel to the UK, the same cannot be said for products blended in Malta or other refineries operating in Nigeria.
Cartels and Monopoly in Fuel Importation
Emmanuel alleges that a cartel of powerful importers, including NNPC itself, continues to dominate the market, profiting from the sale of low-quality petrol. He claims that:
- Some traders deliberately route fuel through Malta for blending, reducing costs but also compromising quality.
- Tank farms in Apapa serve as the main import hubs, where refined products are stored at premium landing costs, making the importation business highly lucrative.
- Nigerian refineries should be producing enough fuel to phase out imports, yet imports remain high due to hidden interests in maintaining the status quo.
What Happens Next?
Industry experts argue that the government must strictly enforce the PIA’s fuel import restrictions and ensure that local refineries function optimally. The continued dependence on imported petrol, especially blended fuel from Malta, contradicts Nigeria’s goal of achieving energy self-sufficiency.
With Dangote Refinery ramping up production, stakeholders are urging the government to:
- Enforce domestic refining laws to curb unnecessary fuel imports.
- Ensure independent testing of imported fuel to meet safety and environmental standards.
- Audit NNPC’s importation activities to expose any irregularities in the fuel supply chain.
The Nigerian public awaits decisive action to break the cycle of fuel importation, ensure quality control, and make locally refined petrol the dominant product in the market. Until then, the high volume of petrol blended in Malta making its way into Nigeria remains a glaring contradiction in the country’s energy policies.
