Nigeria’s reliance on foreign fuel intensified in July as domestic refinery production dropped sharply, forcing the country to rely more heavily on petrol and diesel imports despite expanding its local refining operations.
Official midstream and downstream operational data published on Monday revealed that domestic crude oil receipts for local refineries fell by eight per cent, from 632,000 barrels per day in June to 585,000 barrels per day in July. The reduced feedstock directly impacted production, driving a 21 per cent month-on-month drop in domestic petrol supply, which fell to 25.8 million litres per day.
To bridge the deficit, petrol imports rose by nine per cent to 19.7 million litres per day, extending a trend that began in June when imports spiked by 207 per cent. Overall, total Premium Motor Spirit (PMS) receipts slipped 10 per cent to 45.5 million litres daily.
“Total PMS daily receipts fell by 10 per cent from 50.6 million litres per day in June to 45.5 million litres per day in July. The decline was driven by a 21 per cent drop in domestic supplies, which fell from 32.5 million litres per day to 25.8 million litres per day, even as petrol imports rose by nine per cent from 18.1 million litres per day to 19.7 million litres per day.”
Despite the shift, local refining remains the primary source of national supply, anchored largely by the Dangote Petroleum Refinery. Operating at over 71 per cent capacity utilisation, the facility produced roughly 25.9 million litres of petrol daily during the period, accounting for virtually all recorded domestic PMS receipts.
A similar trend emerged in the Automotive Gas Oil (diesel) sector. While overall receipts surged 46 per cent to 23.6 million litres daily, foreign diesel re-entered the market at 7.9 million litres per day after zero imports were recorded in June. Local diesel output contracted slightly to 15.7 million litres daily.
In contrast, national fuel consumption dropped significantly across multiple categories. Daily petrol truck-out volumes fell 25 per cent to 35.7 million litres, while diesel usage decreased to 14.7 million litres daily. Reduced demand helped boost inventory reserves: petrol stock sufficiency rose from 19.7 days to 22.4 days, and diesel cover expanded 25 per cent to 46.5 days.
Other energy sectors recorded mixed results. Liquefied Petroleum Gas (LPG) saw a positive shift towards self-reliance, as domestic supply climbed 22 per cent to 4.4 kilotonnes per day and imports fell 40 per cent to 0.9 kilotonnes. Daily LPG consumption rose seven per cent to 4.4 kilotonnes. Total domestic natural gas supply fell eight per cent to 4.723 billion cubic feet daily, while Aviation Turbine Kerosene (jet fuel) receipts and consumption slipped to 1.9 million litres and 1.7 million litres per day, respectively.
The operational metrics demonstrate that while private refining capacity and state rehabilitation efforts have structurally altered Africa’s largest oil producer away from total import reliance, foreign supplies remain a vital backup whenever local crude processing fluctuates.