The Central Bank of Nigeria (CBN) has disbursed $2.97 billion to oil industry players for the importation of petroleum products from 2022 to the first quarter of 2024, addressing Nigeria’s ongoing fuel scarcity and energy challenges. Despite the Dangote Refinery’s operations, the country continues to rely on fuel imports, raising concerns about its foreign reserves and the exchange rate impact.
In the first quarter of 2024 alone, the CBN provided $522.9 million for fuel imports, representing 0.01% of the $4 billion spent on imports. This marked a 12.86% increase compared to the same period in 2023. Notably, the country imported $45.82 million worth of fuel in July 2024, but recorded zero imports in August, indicating fluctuating fuel import activity.
Wale Edun, Nigeria’s Minister of Finance and coordinating minister of the economy, revealed that the country’s foreign reserves stood at $37.24 billion as of September 17, 2024, with $2.35 billion in net inflows. However, the continuous need for fuel imports remains a burden on these reserves.
A breakdown of CBN’s foreign exchange (FX) allocation data showed that petrol imports accounted for $173.88 million in January 2023, dropping to $89.85 million by June. The National Bureau of Statistics reported that Nigeria’s petrol import bill reached an all-time high of N3.22 trillion in the second quarter of 2024, making up 25% of the nation’s total imports during that period.
Meanwhile, domestic oil refiners, including officials from the Dangote Petroleum Refinery, expressed concerns about the quality of imported fuels. They claimed that some imported products were inferior to those refined locally by Dangote’s $20 billion plant in Lekki. This comes amid reports that major oil marketers are expecting shipments of imported petrol, which has sparked further debate on the reliance on foreign fuel products.
The continued dependence on imports for fuel, despite the launch of the Dangote Refinery, raises critical questions about the future of Nigeria’s energy security and economic stability.
