From Juliana Taiwo-Obalonye, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that imports of premium motor spirit (PMS) in Nigeria have dropped sharply by about 30 million litres per day over the past eight months, falling from 44.6 million litres in August 2024 to 14.7 million litres by mid-April 2025, representing a 67 percent decline.
This development comes amid ongoing concerns about Nigeria’s heavy reliance on fuel imports despite increased domestic refining capacity.
CEO of NMDPRA, Farouk Ahmed made this disclosure at the sixth meet-the-press briefing organised by the media department of the State House, Abuja, yesterday.
He attributed the steep fall in imports to a significant 670 percent increase in local petrol production during the same period. Local refineries, which contributed almost nothing in August 2024, ramped up output to 26.2 million litres per day by early April 2025, up from 3.4 million litres in September 2024.
Ahmed credited this surge to the phased restart of the Port Harcourt Refining Company in late November 2024 and increased output from modular refineries. Despite these gains, combined local and imported supply only exceeded the government’s benchmark of 50 million litres per day consumption twice in the last eight months, once in November 2024 and another in February 2025. Supply fell just below target in March and remained short in early April.
He emphasised that import licenses were granted strictly based on national supply needs, aiming to balance local production with demand.
In 2024, petrol import costs surged by over 105 percent to a record N15.42 trillion, underscoring the persistent dependence on foreign fuel even as local refineries like Dangote and state-owned facilities ramped up production.
The NMDPRA boss also admitted that the United States President, Donald Trump’s international trade and crude oil policies would have adverse effects on Nigeria’s economy, particularly its ambitious 2025 budget.
Earlier in the year, President Bola Tinubu signed the 2025 budget pegged at approximately N50 trillion, with a projected revenue of N36.3 trillion.
He emphasised the potential negative impact of these policies on Nigeria’s income streams. Speaking on the current slump in crude oil prices and trade restrictions, he said: “The inconsistencies in the U.S. administration’s trade and oil policies will inevitably affect Nigeria’s revenue generation and economic growth.
“On October 11, a product price policy was introduced, which influenced the crude oil and petrol markets. These markets have been experiencing a downward trajectory due to inconsistencies and U.S. government policies. A key factor is the American President’s aspiration to reduce crude oil prices below $50 per barrel by encouraging domestic exploration. This has implications for local industries in terms of crude oil pricing, product pricing, demand and supply.
“As mentioned earlier, crude oil and product pricing are on a downward trajectory. While lower prices benefit consumers, they negatively impact national revenue inflow. For instance, last Friday saw crude oil prices drop from $73-$74 per barrel to $60 in a single day, severely affecting revenue from production.
“Additionally, revenue inflow is compounded by challenges like vandalism, illegal bunkering and reduced production levels. OPEC recently reported that Nigeria’s production has dropped to 1.4 million barrels per day. A $10 decrease in crude oil prices significantly impacts the economy, national reserves and the strength of the Naira. “Although lower product prices may seem favourable to consumers, this volatility poses broader economic challenges.
“This instability persists as recent tariff exemptions by President Trump, particularly for China in vehicular tariffs, caused the market to rise again. This highlights ongoing fluctuations in the global oil industry.”
The NMDPRA boss also outlined significant strides in enhancing the nation’s energy landscape through its key initiatives. These efforts aim to bolster energy security, optimise natural gas utilisation, and ensure sustainable development across the midstream and downstream petroleum sectors.
Key achievements include the promotion of robust local refining of crude oil and increased natural gas processing capacity, which have significantly improved energy security.
He said NMDPRA has also enabled market development by ensuring efficient wholesale supply and transparent pricing of gas and petroleum products.
To enhance accessibility, the authority has prioritised efficient transportation networks, improving the availability of primary energy fuels nationwide. Additionally, effective distribution and retail operations have ensured a steady supply of gas and petroleum liquids across Nigeria.
In line with Nigeria’s economic goals, the NMDPRA is supporting strategic sectors by maximising natural gas utilisation. The agency is also committed to sustainable practices, focusing on health, safety, environment and compliance (HSE&C) to drive the long-term growth of the midstream and downstream sectors.
He also said Nigeria’s refining operations were undergoing significant transformation, with multiple private and state-owned refineries advancing in construction, commissioning and production stages.