THE PARADOX OF PETROL EXPORT AND IMPORT IN NIGERIA: A STUDY OF THE DANGOTE REFINERY'S EXPORT DYNAMICS AND LOCAL MARKETERS' IMPORTATION BEHAVIOR

Abstract

Nigeria’s petroleum sector presents a longstanding contradiction in which the country exports crude oil while importing large quantities of refined petroleum products to meet domestic demand. This study examined the paradox of petrol export and import in Nigeria with specific focus on the export dynamics of the Dangote Refinery and the continued importation behavior of local petroleum marketers. The study adopted a qualitative descriptive design based on the review and analysis of relevant literature, policy reports, and industry publications on Nigeria’s downstream petroleum sector. Findings revealed that the Dangote Refinery possesses significant refining capacity and operates with an export-oriented strategy that targets both domestic and international markets. However, the study also found that local petroleum marketers continue to import petrol due to factors such as price differentials, existing supply contracts, foreign exchange access, and distribution logistics. These factors contribute to a situation in which refined petroleum products are exported from Nigeria while similar products are simultaneously imported into the country. The study concludes that the paradox is largely driven by structural and regulatory conditions within the downstream petroleum market rather than a simple lack of domestic refining capacity. The study recommends improved regulatory coordination, competitive pricing policies, and strengthened domestic distribution systems to ensure that Nigeria maximizes the benefits of its growing refining capacity.