Nigeria Spends N8.96 Trillion on Petrol Imports in 2025 Despite Refinery Push!

Reported by Mustapha Omolabake Omowumi (Journalist) | Sele Media Africa

Nigeria’s reliance on imported petroleum products remains firmly entrenched, as new data reveals that the country spent approximately N8.96 trillion importing Premium Motor Spirit (PMS), commonly known as petrol, between January and December 2025. The development underscores persistent structural challenges in Africa’s largest oil-producing nation, even as investments in domestic refining continue to gain momentum.

According to industry figures and trade data, the import bill highlights the continued gap between Nigeria’s crude oil production capacity and its ability to refine petroleum products locally. Despite being a leading crude exporter, Nigeria still depends heavily on foreign refineries to meet its domestic fuel needs an enduring paradox that has shaped its energy economy for decades.

The surge in petrol import expenditure comes amid heightened expectations surrounding local refining projects, particularly the operations of the Dangote Refinery, widely regarded as Africa’s largest single-train refinery. Located in Lagos, the refinery was projected to significantly reduce Nigeria’s dependence on imported fuel by boosting domestic processing capacity. However, industry analysts note that while progress has been made, full-scale output capable of meeting national demand is yet to be consistently realized.

Market stakeholders, including members of the Independent Petroleum Marketers Association of Nigeria, have attributed the continued reliance on imports to a combination of logistical, regulatory, and supply chain constraints. These include fluctuating foreign exchange availability, infrastructure deficits, and transitional challenges associated with scaling local refining operations.

Economic experts warn that the nearly N9 trillion spent on petrol imports places additional pressure on Nigeria’s foreign reserves and contributes to exchange rate volatility. The reliance on imports also exposes the country to global oil price fluctuations and shipping costs, factors that ultimately influence pump prices and cost of living for millions of Nigerians.

The Nigerian government has, in recent years, introduced reforms aimed at liberalizing the downstream petroleum sector. The implementation of the Petroleum Industry Act (PIA) and the removal of fuel subsidies were expected to attract private investment and enhance efficiency across the value chain. However, the impact of these reforms is still unfolding, with analysts noting that tangible benefits such as reduced import dependence may take time to materialize.

Meanwhile, the Nigerian National Petroleum Company Limited continues to play a central role in fuel importation and distribution. Although the company has made efforts to rehabilitate state-owned refineries, including facilities in Port Harcourt, Warri, and Kaduna, operational efficiency has remained below optimal levels, limiting their contribution to domestic supply.

Energy analysts argue that achieving self-sufficiency in petroleum refining will require sustained investment, policy consistency, and improved governance within the sector. They emphasize that beyond infrastructure, Nigeria must address systemic inefficiencies, including pipeline vandalism, crude oil theft, and regulatory bottlenecks that hinder seamless operations.

Comparatively, several African countries are also grappling with similar energy security challenges, though Nigeria’s scale makes its situation particularly significant for regional markets. As a major economic hub in Africa, Nigeria’s fuel import patterns have broader implications for trade balances, regional supply chains, and energy pricing dynamics.

Stakeholders have called for accelerated collaboration between the public and private sectors to ensure that local refining projects deliver on their promise. The successful optimization of domestic refineries, including modular facilities, is seen as critical to reducing import bills, strengthening the naira, and enhancing national energy security.

As Nigeria navigates this transition, the N8.96 trillion petrol import figure serves as both a stark reminder of existing vulnerabilities and a benchmark against which future progress will be measured. For millions of Nigerians, the stakes remain high, as fuel availability and pricing continue to directly impact transportation, food costs, and overall economic stability.

Sele Media Africa will continue to track developments in Nigeria’s energy sector, providing independent and in-depth coverage of policies, investments, and their real-world implications.

Sources: Reuters, Bloomberg, Punch Newspapers, Premium Times, Channels Television

Mustapha Labake Omowumi

Mustapha Labake Omowumi is a journalist from Ibadan, Oyo State, and a graduate of the Nigeria Certificate in Education (NCE) in Economics and Mathematics. He demonstrates a strong commitment to professional journalism, with a keen interest in writing and storytelling, guided by principles of self-discipline, accuracy, and trustworthiness.

www.selemedia.org