“NIGERIA’S REFINERIES FAIL, FUELING $BILLIONS IN DIESEL IMPORTS”
GREATRIBUNETVNEWS–Despite having multiple refineries, Nigeria’s diesel production is woefully inadequate, forcing the country to rely heavily on imports. Here are the key issues:
– Low Domestic Production : Average domestic diesel production stands at 6.1 million litres per day, covering only 37% of national demand.
– High Import Dependence : Imports contribute 63% of diesel supply, with India emerging as the dominant supplier to West Africa.
– Dangote Refinery Underwhelms : The 650,000 bpd refinery produces 5.783 million litres per day, but overall local refinery output is disappointing.
– Growing Demand : Diesel consumption is 16.4 million litres per day, with demand expected to continue rising.
– Import Surge : Indian diesel shipments to West Africa peaked at nearly 800,000 metric tonnes in early 2026, driven by structural supply gaps
“The country’s reliance on imports exposes its vulnerability to global market fluctuations and FX pressures,” says an industry expert. With local refineries struggling to meet demand, Nigeria’s fuel import bill is set to remain high.
A recent Kpler report notes that European Union sanctions banning oil products derived from Russian crude have sidelined some Indian gasoil from European markets.
While Indian refiners such as Reliance Industries have adjusted crude slates to meet compliance rules, European buyers remain cautious, diverting volumes toward Africa.
As a result, diesel cargoes have increasingly accumulated off the West African coast, intensifying competition and compressing margins in the Atlantic Basin.
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