Nigeria’s Petrol Revolution: Another Nigerian Refinery Begins Petrol Production as Imports Plunge
- Aradel Holdings plans to produce petrol by 2027, boosting Nigeria's local fuel production
- Domestic refineries increased petrol supply to 74.9%, sharply reducing imports this year
- Nigeria's fuel market faces challenges despite growing local refiners and reduced import reliance
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s push to end its long-standing dependence on imported petrol is gaining fresh momentum, with another indigenous energy company preparing to join the country’s growing list of local petrol producers.
Aradel Holdings Plc plans to commence petrol production at its Ogbele modular refinery in Rivers State in 2027, adding another domestic source to Nigeria’s rapidly changing fuel market.
Source: UGC
The development comes as domestic refineries increasingly take a larger share of Nigeria’s petrol supply, while imports have fallen sharply compared with last year.
Another Nigerian refinery joins petrol race
Aradel’s 11,000-barrel-per-day refinery currently produces products including diesel, kerosene, gas oil and naphtha.
The company now plans to add Premium Motor Spirit, commonly known as petrol, to its output as deregulation of the downstream petroleum sector makes local production more commercially attractive.
Temitayo Ogunbanjo, who manages Aradel’s refining operations, said the removal of fuel subsidies and the liberalisation of the market had created a clearer pathway for the company to manufacture petrol.
The planned move would position Aradel alongside major and emerging domestic refiners competing to supply Nigeria’s huge petrol market.
Petrol imports take a hit
The Aradel development comes at a significant moment for Nigeria’s fuel market.
Data cited by Punch showed that domestic refineries supplied about 74.9 per cent of Nigeria’s petrol between January and July 2026, equivalent to roughly 7.41 billion litres. Domestic supply also rose by 73.5 per cent compared with the same period in 2025, while petrol imports fell by 62.3 per cent, Leadership reports.
The figures represent a major shift for a country that historically relied heavily on imported petrol despite being one of Africa’s largest oil producers.
However, the latest trend also shows that the transition remains fragile. Domestic petrol supply fell by 21 per cent in July, while imports increased by nine per cent, according to the latest industry data.
Dangote no longer stands alone
The growing number of domestic refiners could gradually reshape Nigeria’s downstream petroleum industry.
The Dangote Refinery remains the dominant local supplier, but companies such as Aradel and Waltersmith are expanding the number of domestic players capable of producing refined petroleum products.
Aradel is also considering an expansion of its refinery, including additional crude supply arrangements and export logistics. The company is exploring opportunities in aviation fuel production as well.
If the planned petrol production starts as scheduled, Nigeria could have another indigenous supplier helping to reduce pressure on imports.
A new chapter for Nigeria’s fuel market
For motorists and the wider economy, increased domestic refining could eventually mean a more resilient petrol supply chain and reduced exposure to international supply disruptions.
Source: Getty Images
But July’s decline in local petrol supply shows that refinery capacity alone is not enough. Consistent crude supply, reliable operations and sufficient production capacity will determine whether Nigeria can permanently reduce its dependence on imported petrol.
The emergence of more local refiners therefore marks an important step, but the real test will be whether they can consistently keep Nigerian filling stations supplied.
Imported petrol sells higher than Dangote’s rate
Legit.ng earlier reported that the landing cost of Premium Motor Spirit (PMS), popularly known as petrol, has risen slightly above the price offered by the 700,000-barrel-per-day Dangote Petroleum Refinery, even as private depots across Nigeria slash their prices to remain competitive.
Recent checks show that imported petrol currently lands at about N1,167 per litre, compared with N1,165 per litre offered by Dangote Refinery.
Source: Legit.ng
