Despite being Africa’s top oil producer, Nigeria imported crude oil worth ₦1.19 trillion in the first quarter of 2025. This happened because local refineries couldn’t get enough crude oil from domestic sources to meet their processing needs.
According to the latest data from the National Bureau of Statistics (NBS), the imported crude listed as “Petroleum oils and oils obtained from bituminous minerals, crude” was the third most imported product in Q1 2025. It came after gas oil (₦1.83tn) and petrol (₦1.76tn).
United States Leads as Key Supplier
The United States supplied the bulk of the imported product, shipping in ₦726.84 billion worth, which made up 61% of Nigeria’s total crude imports. Angola followed with ₦223.58bn, and Algeria contributed ₦122.37bn.
This heavy reliance on foreign crude shows that local refineries both large plants like Dangote Refinery and smaller modular facilities are turning abroad for oil because local supply remains inconsistent.
Local Refineries Struggle Without Domestic Crude
Although Nigeria’s oil output has increased to over 1.4 million barrels per day, domestic refineries are still not getting the crude they need to operate at full capacity.
The Crude Oil Refinery-owners Association of Nigeria (CORAN) confirmed that many refiners received zero oil allocation under the Domestic Crude Supply Obligation (DCSO) framework. CORAN’s spokesperson, Eche Idoko, stated that refineries have been forced to import crude or shut down operations due to the lack of local supply.
He said, “Local refiners, especially modular refineries, have not been getting crude none under DCSO or any other special arrangement.”
Domestic Supply Policy Fails to Deliver
The DCSO, part of the Petroleum Industry Act (PIA) 2021, is supposed to guarantee that oil producers supply a portion of oil to local refineries before exporting. However, around 500,000 barrels per day meant for domestic refining are still being diverted to foreign buyers.
To address this, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently banned the export of crude that should go to local refiners. NUPRC boss, Gbenga Komolafe, stressed that diverting oil meant for local refining is illegal and warned that defaulting producers would lose export permits.
Modular Refineries Call for Government Action
Despite the regulatory directive, CORAN members say the domestic crude market remains flawed. Many refiners have turned to private import deals to source feedstock, a move they describe as costly and unsustainable.
Idoko appealed to President Bola Tinubu and his economic team to prioritise domestic refiners, especially modular operators, who have invested heavily in Nigeria’s economy.
He added, “We’ve seen more incentives go to petroleum importers than to local refiners. Yet, we’re the ones creating jobs and strengthening the naira.”
Refineries Need Over 770,000 Barrels of Crude Daily
According to NUPRC, Nigeria’s domestic refineries need a total of 770,500 barrels of crude oil per day to meet their processing requirements from January to June 2025.
This includes the following refineries:
- Dangote Refinery: 650,000 bpd
- Warri Refinery: 125,000 bpd
- Kaduna Refinery: 110,000 bpd
- Port Harcourt Refinery: 60,000 bpd
- Aradel Refinery (Rivers): 11,000 bpd
- OPAC Refinery (Delta): 10,000 bpd
- WalterSmith Refinery (Imo): 5,000 bpd
- Duport Midstream & Edo Refinery (Edo): 4,000 bpd combined
NUPRC says this allocation represents 37% of Nigeria’s projected oil production of about 2.07 million barrels per day for the first half of 2025. The agency added that its “Project One Million Barrels”, launched in October 2024, is already improving local output.
Nigeria Still Exports Crude Worth Trillions
Ironically, while local refiners face shortages, Nigeria exported ₦12.96 trillion worth of crude and petroleum products in Q1 2025. That figure represents 62.89% of total exports, according to NBS.
This was lower than ₦15.49 trillion recorded in Q1 2024 and ₦13.78 trillion in Q4 2024, yet crude oil still remained Nigeria’s biggest export, far ahead of natural gas, urea, or cocoa beans.
Top buyers of Nigerian oil during the quarter included India, the Netherlands, the US, France, and Spain.
The Road Ahead
Until local refineries receive oil crude allocations, Nigeria may continue spending trillions on importing both refined and unrefined fuel despite being a major producer.
Stakeholders are urging the government to enforce existing policies, curb diversion, and fully support local refining if the country wants to end fuel import dependence, boost jobs, and strengthen the economy.
