Nigeria imported N930 billion worth of petrol and diesel in February 2025, despite increasing output from local refineries, raising concerns about the rationale behind continued fuel importation amid expanding domestic refining capabilities.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveals that from October 2024 to January 2025, oil marketers brought in petroleum products valued at N5.5 trillion, with February alone accounting for 701.75 million litres of petrol and 265.88 million litres of diesel.
This high level of importation comes despite the growing refining capacity of Dangote Refinery and the Nigerian National Petroleum Company’s (NNPC) Port Harcourt Refinery, both of which produce petrol. Additionally, the Warri Refinery and several modular refineries across the Niger Delta region have ramped up diesel production.
However, Executive Director of Distribution, Systems, Storage, and Retailing Infrastructure at NMDPRA, Ogbugo Ukoha, defended the continued approval of import licenses, citing domestic production shortfalls.
“Before the current administration, daily PMS (Premium Motor Spirit) supply sufficiency was above 60 million litres, averaging 66 million litres daily,” Ukoha stated.
“But following Mr. President’s subsidy removal announcement on May 29, 2023, consumption declined sharply. Since then, we have maintained an average of 50 million litres per day. Less than 50% of this is met by local refineries, necessitating imports to cover the shortfall in accordance with the Petroleum Industry Act (PIA).”
Despite these claims, Aliko Dangote, President of Dangote Industries Limited (DIL), disclosed in February that his refinery currently holds over 500 million litres of petrol and N600 billion worth of petroleum products in stock.
Economic analysts, including Business Consultant Dan Kunle, have expressed concerns that Nigeria’s continued fuel import dependency could erode recent naira stability.
“The sustained reliance on fuel imports, particularly at this scale, could undermine foreign exchange reserves and put pressure on the naira, reversing recent gains,” Kunle explained.
Breakdown of February 2025 Import Figures
Petrol imports: 701.75 million litres
Diesel imports: 265.88 million litres
Estimated import bill for February:
Petrol – N650.8 billion
Diesel – N278.5 billion
The fuel tanker shipments mainly arrived through Lagos, Port Harcourt, Calabar, and Warri ports.
Meanwhile, NNPC Group CEO, Mele Kyari, stated that the company had not imported petrol this year, further highlighting the divide between local production efforts and the massive import figures.
Experts argue that despite increasing local refining activity, persistent logistical challenges, supply chain inefficiencies, and production scale-up issues continue to hinder Nigeria’s ability to meet domestic fuel demand.
Kunle emphasized that reducing reliance on imports will require:
Optimizing refinery operations to boost production efficiency
Establishing competitive local pricing structures to discourage importation
Strengthening regulatory frameworks to incentivize domestic supply
With two of NNPC’s four refineries – Warri and Port Harcourt – reportedly resuming operations, and private refineries like Dangote, Waltersmith, and Aradel actively producing, stakeholders are calling for urgent reforms to ensure Nigeria capitalizes on its growing refining capacity and reduces costly fuel imports.
