The Federal Government revealed on Wednesday that Nigeria’s daily petrol consumption has decreased to 50 million litres, with domestic refineries now meeting half of the demand. The remaining 25 million litres are being imported to bridge the gap, ensuring the country avoids fuel scarcity.
Speaking to journalists after a stakeholders’ meeting in Abuja, Mr. Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), explained that the importation of petrol is necessary to maintain supply stability.
“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 of PMS from 2021 and 2022 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 a day for PMS. And following Mr. President’s withdrawal of subsidy, the announcement on May 29th, 2023, we immediately saw a steep decline in consumption, and between then and as we speak, we’ve continued to do plus or minus 50 million,” Ukoha stated.
He further clarified that none of the companies involved in domestic refining are participating in the importation of petrol. “Of these 50 million litres, averaging for each day, less than 50% of that is contributed by domestic refineries, and so the shortfall in accordance with the PIA (Petroleum Industry Act) is sourced by way of imports,” he added.
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In addition to addressing petrol supply, Ukoha announced a significant policy change affecting the transportation of petroleum products. Starting March 1, 2025, tankers with a capacity exceeding 60,000 litres will be banned from transporting petrol and other petroleum products. This decision comes despite protests from truck owners, who argue that the ban will result in significant financial losses.
The National Association of Road Transport Owners (NARTO) had previously warned that the ban would cost its members over N300 billion invested in more than 2,000 trucks currently in operation. However, Ukoha emphasized that the move is necessary to address safety concerns and reduce the strain on Nigeria’s road infrastructure.
“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 that is carrying more than 60,000 litres of hydrocarbon will not be allowed to load at any loading depot,” Ukoha said.
He reiterated the timeline for the policy, stating, “Let me repeat, beginning 1st March, trucks with a capacity in excess of 60,000 litres will not be allowed to load in any loading 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. So that is the breaking news for today.”
The NMDPRA’s decision aims to curb the recent spike in petrol tanker fires and mitigate the damage caused by heavy trucks on Nigerian roads. The authority is working closely with stakeholders, including security agencies, transport unions, and industry players, to ensure a smooth implementation of the new regulations.