Nigeria’s Refinery Struggles Deepen as Fuel Import Bill Hits ₦46.17 Trillion Amid Calls for Local Production Reform

Nigeria’s dependence on imported fuel continues to spark debate as industry experts warn that local refineries are still struggling with major structural and financial barriers. According to stakeholders in the oil sector, these challenges are slowing down efforts to reduce the country’s heavy reliance on imported petroleum products.

Chairman of the Board of Trustees of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Capt. Emmanuel Iheanacho (rtd), stressed that encouraging domestic refining remains the most effective way to cut import dependency. He explained that while refinery development is technically demanding and capital-intensive, it holds the key to long-term energy independence, job creation, and export potential.

Capt. Iheanacho noted that investors face serious hurdles, especially in accessing funding. He described refinery construction as “a tall order,” pointing out that beyond technical expertise, developers require massive financial backing for land acquisition, consultancy, and construction. He added that even experienced investors struggle to complete projects due to limited access to affordable financing.

He further urged government intervention through supportive financial policies, including low-interest funding and dollar reinvestment mechanisms to support refinery development. According to him, local banks are often unable to provide the scale of funding required, making government-backed solutions essential for progress in the sector.

Data from the Nigerian Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN) revealed that Nigeria spent a staggering ₦46.17 trillion on fuel imports between 2020 and 2025. The figures highlight rising expenditure over the years, despite a slight decline in 2025 compared to 2024, underscoring the country’s continued vulnerability to global oil market pressures.

source: newtelegraph