Despite growing investments in domestic refining, Nigeria still allocated ₦930 billion to fuel imports in February 2025, raising concerns about the nation’s dependence on foreign petroleum products. This persistent dependence on foreign petroleum products has sparked debate over the justification for continued importation, particularly as domestic refineries ramp up production.
According to data on fuel importation, aside from the February bill, oil marketers licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) imported petroleum products worth ₦5.5 trillion between October 2024 and January 2025.
This development comes despite the operational expansion of the Dangote Refinery and the Nigerian National Petroleum Company (NNPC)-owned Port Harcourt Refinery, both of which produce petrol. Additionally, the Warri Refinery and modular refineries, primarily located in the Niger Delta, contribute to local diesel production.
The NMDPRA has defended the continued approval of petroleum imports, citing an insufficient supply from domestic refineries. The agency stated that local production meets only 50% of Nigeria’s daily fuel consumption, necessitating imports to bridge the gap.
Ogbugo Ukoha, Executive Director of Distribution, Systems, Storage, and Retailing Infrastructure at NMDPRA, explained: “Before the current administration took office, the daily supply of Premium Motor Spirit (PMS) exceeded 60 million litres, averaging about 66 million litres per day. Following the removal of fuel subsidies on May 29, 2023, consumption declined sharply to approximately 50 million litres per day. Less than 50% of this demand is met by local refineries, leaving a significant shortfall to be covered through imports.”
Despite these assertions, Aliko Dangote, President of Dangote Industries Limited (DIL), stated in February that his refinery holds over 500 million litres of petrol and petroleum products worth ₦600 billion in stock.
Business consultant Dan Kunle warned that Nigeria’s persistent reliance on imports could undermine recent gains in naira stability. February’s import data revealed that the country brought in 701.75 million litres of petrol and 265.88 million litres of diesel. Based on landing cost estimates from the Major Oil Marketers Association of Nigeria (MOMAN) as of February 20, the total import bill for February surpassed ₦650.8 billion for petrol and ₦278.5 billion for diesel.
Fuel shipments primarily arrived through Lagos, Port Harcourt, Calabar, and Warri ports. However, NNPC Group CEO Mele Kyari clarified that the company had not imported petrol in 2025.
The significant import figures persist despite increased domestic refining operations. Two of NNPC’s refineries, in Warri and Port Harcourt, have resumed operations, while private refineries such as Dangote, Waltersmith, and Aradel are actively contributing to local fuel supply.
Kunle highlighted key obstacles such as transportation delays, challenges in ramping up production, and inefficiencies in the supply chain as factors sustaining Nigeria’s reliance on imports. He emphasized that reducing this dependency will require improving refinery efficiency, ensuring competitive local pricing, and implementing stronger policies to promote domestic fuel production.
He also warned that the continued reliance on dollar-priced imports could undermine recent gains in the naira’s stability and exert further strain on Nigeria’s foreign exchange reserves.
