By Ese Ufuoma
In a country that exports millions of barrels of crude oil daily, it’s hard to believe that fuel scarcity can still bring everyday life to a halt. Yet, Nigeria has faced just that: long queues at filling stations, rising transport fares, and citizens at the mercy of global oil markets for decades. But now, the tide may finally be turning.
Nigeria is entering a new era of energy independence with a bold plan: building strategic petroleum reserves. These reserves act as emergency fuel stockpiles and are designed to help the country weather global supply shocks and reduce its heavy reliance on imported refined petroleum products.
At the heart of this effort is the simple but powerful idea of “preparing for the worst, even when things seem okay.” The reserves will serve as a national fuel bank, ensuring that even if international supply chains falter or prices shoot through the roof, Nigerians can still keep their lights on and engines running.
The reserves are part of the country’s broader energy reforms under the Petroleum Industry Act. Currently, Nigeria can only store enough refined fuel to last about 30 days. With the new plan, that safety net will be stretched significantly, though officials are keeping exact figures close to the chest for now.
But what’s a fuel stockpile without homegrown fuel? That’s where Nigeria’s refining revolution comes in. The much-anticipated Dangote Refinery started operations in late 2024, and its impact has been immediate. With a capacity of 650,000 barrels per day, it’s already cutting Nigeria’s petrol imports nearly in half from over 50 million litres per day to less than 29 million litres.
And it doesn’t stop there. Along with five smaller refineries ramping up output, Nigeria could be refining more than 770,000 barrels per day by mid-2025. For a country that has depended on fuel imports for years, this marks a major shift. With more refining done at home, there’s less pressure on the naira, reduced inflation, and fewer surprises at the pump.
However, building a fuel reserve is more than just refining oil and storing it. Nigeria’s ageing pipeline network, once the lifeline of fuel distribution, has become a weak link. Years of neglect and pipeline vandalism have turned a once-efficient system into a logistical headache. So, the government isn’t just thinking about tanks full of fuel, it’s also reviving the infrastructure to move those products quickly and safely when needed.
Money is another reason this plan can’t come soon enough. Between January and September 2024, Nigeria spent over N9.1 trillion on fuel imports, nearly double what was spent during the same period in 2023. These spending drains the economy and leaves everyday Nigerians picking up the bill through higher prices on food, transport, and services.
To reduce costs and speed up implementation, the government plans to use existing storage facilities, including 22 depots owned by the Nigerian National Petroleum Company Limited (NNPC). These will be upgraded and integrated into the new strategic reserve system. It’s a smart move that saves money and time while putting idle infrastructure back to work.
But like any big plan, success won’t happen overnight. For the reserves to work, there must be a steady supply of crude to local refineries, reliable pipelines to distribute products, and proper maintenance of storage facilities. That means coordination, investment, and accountability, all of which have been weak spots in the past.
Still, the direction is promising. For the first time in a long while, Nigeria is not just reacting to fuel crises, it’s preparing for them. The combination of strategic reserves, growing domestic refining, and a focus on infrastructure means the country is finally laying the foundation for real energy security.
Soon, Nigerians may no longer have to dread fuel price hikes or panic-buy during supply disruptions. With a fuel reserve in place and homegrown petrol flowing steadily, the dream of a stable and self-reliant energy sector could soon become a reality.
And when that happens, filling up your tank might no longer feel like a gamble but just a regular part of life in a more prepared and prosperous Nigeria.
Looking ahead, Nigeria’s initiative to build strategic petroleum reserves is a proactive step towards energy self-sufficiency. By leveraging domestic refining capacities and revamping distribution infrastructure, the nation aims to secure its energy future amidst global uncertainties.