The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the country recorded its highest-ever importation of Premium Motor Spirit (PMS) in 2022, with a total volume of 23.54 billion litres.
According to NEITI, the lowest recorded fuel import was in 2017, with 16.88 billion litres brought into the country.
The agency also commended the Nigerian National Petroleum Company Limited (NNPCL) for achieving significant milestones, including the completion of the first phase of the Port Harcourt Refinery and the restart of operations at the Warri Refinery.
In a statement issued by Obiageli Onuorah, the Acting Director of Communication & Stakeholders Management at NEITI, the revival of these refineries is seen as a major step towards achieving energy independence and boosting economic sustainability.
“Reducing the enormous expenditure associated with fuel imports will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across various sectors of the economy,” Onuorah stated.
She further emphasized that these developments mark critical progress in reducing Nigeria’s reliance on imported petroleum products.
NEITI highlighted that restoring operations at the Port Harcourt and Warri refineries is expected to enhance energy security, generate employment, stimulate local industries, and free up financial resources for key national initiatives such as healthcare, education, and infrastructure development.
Decline in PMS Imports and Future Outlook
NEITI’s report disclosed that between 2022 and 2023, fuel imports declined by 3.25 billion litres, representing a 14% drop from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.
The agency expressed optimism that with efforts to revive the refineries, the substantial funds previously allocated for fuel subsidies—amounting to N15.87 trillion over an 18-year period—could be redirected to critical national development projects.
“We urge the NNPC to accelerate the completion of the second phase of the Port Harcourt Refinery and continue with the ongoing rehabilitation of the Kaduna Refinery. Achieving optimal capacity at the Port Harcourt Refinery’s first phase is essential,” NEITI stated.
The agency also acknowledged the dedication and commitment of the NNPCL leadership in tackling the complex challenges involved in refinery rehabilitation.
Commitment to Transparency
As a key stakeholder in Nigeria’s energy sector, NEITI reaffirmed its support for NNPCL’s efforts to ensure the long-term success of the refinery projects. It pledged to collaborate with both national and international partners, including the Extractive Industries Transparency Initiative (EITI), to share progress and achievements.
In conclusion, NEITI emphasized that the successful revival of Nigeria’s refining capacity will significantly contribute to reducing fuel importation costs, improving foreign exchange reserves, and advancing the nation’s economic growth agenda.
