The Federal Government of Nigeria is set to establish a national strategic petroleum products reserve this year to protect the economy from disruptions in the global oil market.
Speaking at a press briefing on Tuesday, Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the move—mandated by Nigeria’s oil law—is designed to mitigate supply shocks and strengthen the country’s energy security.
Despite being a major oil producer, Nigeria has long grappled with frequent fuel shortages and prolonged queues at petrol stations. The government is now looking to leverage growing domestic refining capacity—particularly the 650,000 barrels-per-day Dangote Refinery—to build resilience against international supply volatility.
Currently, Nigeria holds petroleum reserves sufficient for roughly 30 days of consumption. However, Ahmed explained that the proposed National Strategic Stock, modelled after the United States’ Strategic Petroleum Reserve, would be much larger in scale—though he did not disclose the intended volume.
Under the Petroleum Industry Act, the NMDPRA is authorised to issue bulk petroleum liquids storage licences to private depots capable of holding petroleum products for extended durations.
The start-up of the Dangote Refinery in September, alongside five smaller operational refineries, has already made a significant impact. Nigeria’s gasoline imports fell from 50.8 million litres per day in September to 28.7 million litres per day last month, according to NMDPRA data.
These local refineries are collectively projected to process 770,500 barrels per day (bpd) through to June 2025. The regulator expressed optimism that as refining capacity expands, Nigeria may eventually eliminate its need for imported petrol altogether.
