The importation of Automotive Gas Oil, Diesel, into Nigeria saw a significant increase of 22.66 percent in 2023, reaching a total of 4.94 billion liters compared to 4 billion liters in the previous year.
This information was disclosed by the National Bureau of Statistics in its recently released Petroleum Products Distribution Data.
In addition to the rise in imports, the data highlighted a modest growth in local diesel production, with 109.39 million liters produced in 2023, up from 102.47 million liters in 2022.
This reflects a growth rate of 6.76 percent in domestically produced diesel, indicating a slight improvement in Nigeria’s self-sufficiency in this critical fuel.
Despite this growth in local production, Nigeria continues to rely heavily on imported diesel to meet its consumption needs, as evidenced by the NBS data for 2023.
This dependency raises questions about the country’s capacity to fully satisfy domestic demand through local refining and production.
In contrast to the diesel market, the importation of Premium Motor Spirit (petrol) experienced a decline, dropping by 13.77 percent to 20.30 billion liters in 2023, down from 23.54 billion liters in 2022.
This shift may reflect changes in consumption patterns or efforts to enhance local production capabilities.
It’s noteworthy that in April 2024, the Dangote Refinery commenced the domestic sale of diesel in Nigeria, marking a pivotal moment in the country’s efforts to bolster local production and reduce its dependency on imports.
The refinery’s entry into the market is expected to have significant implications for the diesel supply landscape in Nigeria, potentially reshaping the dynamics of fuel availability and pricing in the future.
