Fuel Overview 

There are several fuel storage companies in different locations, these are concentrated in the South of Nigeria.

The fuel is distributed throughout the country by the State oil corporation, Nigerian National Petroleum Corporation (NNPC) and by independent marketers including Nigerian businesses and subsidiaries of international companies.    

The NNPC has a distribution network with around 700 stations throughout the country.

Nigerian Independent Petroleum Company Plc (NIPCO), formerly called IPMAN, is an association of Independent Marketers of Petroleum Products across the nation. It has about 6,000 members, each of them owning from two to eight filling stations in different parts of the country, and nearly 75% of the country's total oil distribution is through the IPMAN filling stations. 

The NIPCO/IPMAN cooperative, involving the physical financial participation of about 3,000 independent oil marketing companies, has been acknowledged as the second largest employers of labour after the Federal Government in the sector. 

There are problems in the marketing and distribution of petroleum products in Nigeria and acute shortages occur due to: 

-  location of some depots far from the source of supply of these products 

- inability of supply to equate demand during festive periods e.g. Easter, Christmas and New Year 

- poor transport infrastructure 

- frequent power failures 

- inadequate storage and refining capacity 

- finance inadequacy 

- activities of thieves/vandals 

- non-uniform pricing 

- unforeseen strike action 

There have been instances of Jet A-1 fuel supply crises of low stock due to the inability of marketers to get the foreign exchange to import more Jet A-1 fuel into the country. Airlines have had to postpone flights while waiting for the fuel marketers to source and deliver the product. 

Nigeria is the only member country in the Organisation of Petroleum Exporting Countries, OPEC, that imports petrol. 

According to the International Energy Agency (IEA), the country’s four refineries (two in Port Harcourt, and one each in Warri and Kaduna) produce a combined 445,000 barrels of petrol per day (bdp). It is 120 times less than the country’s daily need, which currently stands at 53 million litres per day (2018 figures). NNPC imports one million tonnes of petrol per month. 

Nigeria was the fourth-largest buyer of Chinese gasoline in January 2019.

For more information on government and fuel provider contact details, please see the following links:

4.1 Nigeria Government Contact List

4.7 Nigeria Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly.  

Fuel Pricing 

Petroleum Products Pricing Regulatory Agency (PPPRA) is a governmental organisation with responsibility for monitoring and regulating the supply and distribution, and determining the prices of petroleum products in Nigeria. 

The Government established the Petroleum Support Fund (PSF) with effect from January 2006 as an interventionist fund. The PSF is a pool of funds provided in the budget to stabilize the domestic prices of petroleum products against volatility in international Crude and Products Prices. The PSF account is expected to be supplemented with the accruals during the period of over-recovery (over-recovery here refers to the period at which the PPPRA recommended ex-depot is higher than the Landing Cost). 

Seasonal Variations  

Variations in price may occur as a result of shortages that occur during holiday festive seasons when extra usage puts pressure on supply 

Fuel Transportation 

Transportation of fuel is a weak link in the supply chain. It is carried out through pipeline, trucks and railway.  Poorly maintained road networks, decaying railroads and tanker fleet are not sufficient to handle current domestic needs. Direct supply pipelines to airports are subject to deterioration as a result of lack of maintenance and contribute to increased costs due to the necessity of using tankers to transport fuel.    

Standards, Quality and Testing 

Standard of quality is often variable due to deficiencies in fuel transport infrastructure as mentioned above. 

Further contact information on additional accredited laboratories can be found at: https://www.dpr.gov.ng/wp-content/uploads/2019/02/Accredited-Laboratories-2018updated.pdf 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.