The Federal Government has confirmed that Nigeria currently imports 25 million litres of petrol daily, accounting for half of the nation’s total fuel consumption. The other half is supplied by local refineries, ensuring stability in the downstream petroleum sector.
Nigeria’s Fuel Consumption Drops to 50 Million Litres Daily
Speaking to journalists after a stakeholders’ meeting in Abuja, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Ogbugo Ukoha, explained the latest petrol supply dynamics.
He stated:
“Let me speak a little bit about supply. All of us have experienced a yuletide free of any scarcity, and let me just reconfirm that from year to year, we saw an increase in the demand for PMS by 2021, 2022, and up to 2023, just before the current administration came in. The daily PMS supply sufficiency was always in excess of 60 million, in fact averaging about 66 million litres a day. Following Mr. President’s withdrawal of subsidy, announced on May 29, 2023, we immediately saw a steep decline in consumption. Since then, we’ve continued to maintain an average of 50 million litres daily.”
He further clarified that less than 50% of the daily petrol consumption is sourced from domestic refineries, with the remaining shortfall covered through imports, in accordance with the Petroleum Industry Act (PIA).
FG Bans 60,000-Litre Tankers from March 1, 2025
In a significant policy shift, the NMDPRA has banned 60,000-litre capacity tankers from transporting petroleum products, effective March 1, 2025. This decision follows concerns over tanker accidents and road infrastructure damage caused by high-capacity vehicles.
The ban comes despite opposition from the National Association of Road Transport Owners (NARTO), which warned last week that its members had invested over N300 billion in acquiring more than 2,000 units of these tankers. The move, they argue, could significantly impact petroleum distribution logistics.
Ukoha emphasized that the decision was driven by safety concerns, as these high-capacity tankers have been linked to an increase in fire incidents involving petrol transportation.
“The breaking news about that today is that in today’s meeting comprising DSS, FEMA, Federal Fire Service, Road Safety, NATO, NUPENG, MEMAN, PETROAN, IPMAN, DAPMAN, SON, ONSA, it was decided that beginning 1st March, any truck with an axle load carrying more than 60,000 litres of hydrocarbon will not be allowed to load at any depot.
Let me repeat, beginning 1st March, trucks with a capacity in excess of 60,000 litres will not be allowed to load in any depot for petroleum products. By Q4 of 2025, we will also preclude the loading or transportation of petroleum products on any truck in excess of 45,000 litres.”
Impact on Road Infrastructure and Safety
Beyond fire risks, Ukoha noted that these high-capacity tankers contribute to road deterioration across Nigeria. The government aims to enhance road safety and transport efficiency by enforcing stricter load limits.
This policy shift is expected to reshape the petroleum supply chain, with stakeholders urging the government to provide alternatives and mitigate economic losses for tanker owners.