The Central Bank of Nigeria (CBN) has disclosed that it injected a total of $1.25 billion into the oil sector for the importation of petroleum products and related items between January and September 2024.
This represents a 40 percent increase from the $891 million disbursed during the same period in 2023 despite the removal of fuel subsidies and recent reforms aimed at boosting local refining capacity.
The development has sparked concerns over Nigeria’s continued reliance on fuel imports, even as local refineries, including the 650,000-barrels-per-day Dangote Petroleum Refinery, began operations.
Analysts warn that sustained import levels could undermine efforts to strengthen foreign reserves and stabilize the naira.
A breakdown of the CBN’s quarterly statistical bulletin showed that $26.55 million was allocated in January, $161.88 million in February, and $334.47 million in March.
The amount dropped to $106.48 million in April and $150.45 million in May before rising again to $36.82 million in June. By the third quarter, allocations stood at $107.10 million in July, $132.45 million in August, and $192.71 million in September.
The increased spending on petroleum imports occurred alongside the government’s implementation of a fully deregulated petroleum market in October, allowing refineries to sell directly to marketers.
This policy initially led to a spike in petrol prices, reaching N1,060 per liter before settling at N935 per liter in December due to a price competition between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote refinery.
The National Bureau of Statistics reported that Nigeria imported N5.14 trillion worth of mineral fuels in the third quarter of 2024, accounting for 35 percent of the N14.67 trillion total imports during the period.
In the second quarter alone, petrol imports hit a record high of N3.22 trillion—25 percent of total imports.
Furthermore, Nigeria’s petrol import bill for the first half of 2024 stood at N10.96 trillion, reflecting a 100 percent increase compared to N5.48 trillion recorded in the same period in 2023.
The Crude Oil Refinery Owners Association of Nigeria noted that costs associated with jetty charges and other fees, still quoted in dollars, continue to drive up prices.
The Publicity Secretary of CORAN, Eche Idoko, urged authorities to address these issues.
He said, “Jetty charges were still in dollars,” and called on the Nigerian Maritime Administration and Safety Agency to fix its charges in naira.
Observers have pointed out that Nigeria’s reliance on fuel imports, coupled with rising forex allocations, reflects persistent gaps in the country’s refining capacity.
