Motorists queuing at a filling station in Lagos. Photo: Stanley Ogidi
The persistent shortage of Premium Motor Spirit (PMS), commonly known as petrol, will continue until Nigeria begins refining petroleum products domestically and ends its total reliance on imports, oil marketers say. Currently, the country imports PMS and other refined crude oil products because its refineries in Kaduna, Warri and Port Harcourt are non‑operational after years of dormancy. Although revamp work is underway at these facilities, marketers argue that nationwide fuel scarcity will only cease when local refining capacity is restored.
The challenges associated with importing refined petroleum have intensified, especially since Russia’s invasion of Ukraine in February last year. The Nigerian National Petroleum Company Limited (NNPC), the sole importer of petrol, is struggling with subsidy burdens on PMS amid a sharp devaluation of the naira against the US dollar and other fiscal pressures. Oil marketers contend that continued reliance on imports is unsustainable and urge the government to prioritize in‑country refining to ensure product availability and long‑term sustainability.
“The crux of the whole issue of petroleum product supply is the lack of refining capacity that we don’t have in the country,” said Zarma Mustapha, Deputy National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN). He warned that without sufficient domestic refining, the recurring fuel shortages will persist. While acknowledging that the government, through NNPC, is working on the refineries, Mustapha criticized the slow pace of progress. “I am happy with what the NNPC boss and the government are doing to revive the Port Harcourt refinery as the first step, followed by Warri and Kaduna,” he said, “but the rate of repairs is too slow. Contractors must accelerate their work, and I pray the Dangote Refinery starts production as soon as possible. This would reduce our dependence on imports and address at least 70 % of our refined product distribution problems.”
Efforts to bring Nigeria’s refineries back to operation are ongoing. On Thursday, NNPC and Daewoo Engineering and Construction Nigeria Limited signed a $740.67 million (₦341.48 billion at the official exchange rate of ₦461.04/$) contract to rehabilitate the Kaduna Refining and Petrochemical Company (KRPC). Executives signed the agreement at NNPC’s Abuja headquarters, and Executive Vice President, Downstream Adeyemi Adetunji, said the project would take 21 months. The “quick‑fix” strategy will repair and re‑stream KRPC, targeting a minimum 60 % capacity utilisation. Adetunji noted that this marks a milestone, as the last turnaround maintenance at the refinery occurred about 15 years ago, and the project follows extensive engagement with Daewoo.
Adetunji also highlighted that the quick‑fix approach will expedite the re‑streaming of both Warri Refining and Petrochemical Company (WRPC) and KRPC, boosting domestic production of refined petroleum products. Restoring WRPC and KRPC to operation will enhance energy security, reduce dependence on imports, and mitigate the impact of the Russia‑Ukraine war on global supply. He reported that the Port Harcourt Refinery’s rehabilitation is 64 % complete, with the plant expected back in operation in Q2 2023, while the overall PHRC project stands at about 59 % completion. The WRPC quick‑fix project is 28 % complete and is slated for re‑streaming by the end of the year.
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