Nigeria, often referred to as the “giant of Africa,” is one of the largest oil producers globally, yet the country grapples with a significant challenge—meeting its domestic petroleum needs. While crude oil has been a mainstay of the Nigerian economy for decades, the nation struggles to refine enough crude oil locally to satisfy its internal demand. With recent economic hardships, coupled with surging prices of petroleum products, many Nigerians are asking, “How much crude oil is Nigeria really refining daily?”
The refining capacity of Nigeria has long been a topic of concern. Despite being Africa’s largest crude oil producer, the nation has faced chronic issues with its refineries, leading to an overwhelming reliance on imported refined products. The inability to refine adequate amounts of crude oil domestically has placed immense strain on Nigerians, causing a sharp increase in the prices of petroleum products, with many citizens feeling the pinch in their daily lives.
Current Refining Capacity
Nigeria has four major refineries located in Port Harcourt, Warri, and Kaduna. However, these refineries have been operating well below capacity for several years due to underinvestment, poor maintenance, and mismanagement. According to reports, the combined installed capacity of these refineries stands at around 445,000 barrels per day, which translates to approximately 70.8 million litres of refined products daily. However, due to the operational inefficiencies of these refineries, Nigeria is currently refining far less than this capacity.
Industry insiders and government sources have revealed that Nigeria is refining as little as 60,000 to 80,000 barrels of crude oil per day—roughly translating to 9.6 to 12.8 million litres of refined petroleum products daily. This stark contrast between installed capacity and actual output highlights the country’s refining deficit, with most of the shortfall being made up by costly imports.
The Reliance on Imported Petroleum Products
Due to these refining challenges, Nigeria remains heavily dependent on imported petroleum products, despite being one of the world’s top crude oil producers. This over-reliance on imports has had a significant impact on the economy, contributing to the rising cost of fuel at local filling stations and driving inflation. To make matters worse, fuel subsidies have been a controversial issue, with the government spending billions to keep prices relatively stable, despite the inefficiencies in local refining.
The Way Forward
Nigeria’s government has made efforts to revive its local refining capacity, with promises of rehabilitating the existing refineries and the much-anticipated Dangote Refinery, expected to add up to 650,000 barrels per day to the nation’s refining capacity. Should this project come to fruition, it could dramatically increase the amount of crude oil refined domestically and significantly reduce Nigeria’s dependence on foreign petroleum imports.
While Nigeria has the potential to refine up to 70.8 million litres of crude oil daily, the current reality falls far short. The urgent need to revitalize the country’s refineries and ensure that they operate efficiently cannot be overstated. As Nigeria grapples with the harsh realities of economic hardship and soaring fuel prices, boosting local refining capacity has never been more critical. Without this, the nation’s oil paradox—being an oil-rich country that imports most of its fuel—will continue to burden the average Nigerian, with crude oil remaining a luxury beyond reach.
Sources: Nigeria National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR), Industry Reports and Analysis, Bloomberg, Reuters, The Guardian Nigeria, BusinessDay Nigeria, International Energy Agency (IEA)
