Business
Diesel Importation Blamed on Low Local Production
Nigeria’s reliance on importation of diesel has been blamed on low production by modular refineries in the country.
Reports also show that the 650,000 barrels a day Dangote Refinery produces well over the combined production capacity of existing modular refineries in the West African country.
It was gathered that the underperformance, outages and delays at regional refineries have limited local supply responses especially in Nigeria, the region’s largest diesel market.
Despite the start-up of new refining capacity and official claims of improving domestic supply, diesel, unlike petrol, remains fully deregulated and heavily import-dependent.
ALSO READ: Prices of Petrol, Diesel, LPG Will Continue to Fall – NMDPRA
Going by information from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), average domestic diesel production currently stands at about 6.1 million litres per day.
The Dangote Refinery accounts for the bulk of the output at 5.783 million litres per day, while Waltersmith supplies about 0.051 million litres; Edo Refinery 0.052 million litres and is around 0.289 million litres daily.
The NMDPRA monthly supply data for 2025 indicated that in January, total diesel supply averaged 15.1 million litres per day, with imports contributing 8.6 million litres.
Supply inched up to 17.1 million litres in February and peaked at 21.1 million litres in March, when imports surged to 16.7 million litres, dwarfing domestic output of just 4.4 million litres.
However overall supply trimmed to 14.1 million litres per day in May, the lowest level in the year, as imports fell and domestic production weakened.
In-country refining helped stabilise supply between July and August, contributing up to eight million litres per day, imports remained the swing factor.
Another import-led rebound in October pushed supply to 21.3 million litres, before easing to 17.9 million litres in December.
Given the abysmal performance of local refineries, import of diesel from India into West Africa surged to record levels.
This further exposes the region’s dependence on overseas refined fuel despite repeated policy commitments to boost domestic refining.
The NMDPRA revealed that Nigeria still imports 63 percent of its diesel as Dangote Refinery, Waltersmith Refinery, Edo and Aradel refineries supply a combined 6.1 million litres per day compared to daily demand of about 17 million litres.
The S&P Global Commodity data at Sea show that Indian diesel shipments to West African countries have moved sharply higher since 2022, peaking at nearly 800,000 metric tonnes by early 2026, as structural supply gaps persist across the region’s largest economies.
Between 2022 and early 2023, Indian diesel flows into West Africa were highly volatile, swinging between below 100,000 tonnes and above 400,000 tonnes. The fluctuations mirrored unstable post-pandemic demand, foreign exchange (FX) shortages and intermittent buying by regional fuel marketers, particularly in Nigeria and Ghana, where subsidy reforms and currency pressures distorted consumption patterns.
From mid-2023 through 2024, however, import volumes became structurally higher as regular monthly spikes above 400,000 tonnes pointed to growing reliance on Indian refiners, whose scale, pricing flexibility and access to discounted crude enabled them to displace traditional European suppliers.
India’s emergence as Africa’s dominant diesel supplier was also shaped by shifting global trade flows, as Europe reduced intake of Russian-linked products, leaving Indian gasoil searching for alternative markets, a report by Kpler showed.
The most striking acceleration occurred from late 2025 into early 2026, when shipments climbed steeply to an unprecedented 800,000 tonnes.The surge reflected not only rising consumption but also stress across West Africa’s energy systems. Chronic electricity shortages have entrenched diesel-powered generation, while population growth, logistics expansion and industrial activities have driven sustained demand.
The dominance of Indian diesel is also being reinforced by global trade dislocations.
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.
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months
The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Business
FHC Orders NUPRC to Comply with PIA
Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products
Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”





