Nigeria spent a massive ₦930 billion on fuel imports in February 2025, despite increased production from local refineries, raising concerns over the country’s continued dependence on foreign petroleum products.
According to official data, oil marketers licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) imported 701.75 million litres of petrol and 265.88 million litres of diesel in February alone. This adds to a growing trend, with ₦5.5 trillion spent on fuel imports between October 2024 and January 2025.
Defending the sustained importation, NMDPRA’s Executive Director of Distribution, Systems, Storage, and Retailing Infrastructure, Ogbugo Ukoha, stated that local refineries currently supply less than half of Nigeria’s daily fuel consumption.
“Of the 50 million litres consumed daily, domestic refineries contribute less than 50 per cent,” Ukoha explained. “The shortfall is covered through imports, as outlined in the Petroleum Industry Act (PIA).”
This reliance continues despite the rising capacity of local refineries, including the Dangote Refinery and the recently revived Port Harcourt and Warri refineries. The Dangote Refinery alone reportedly holds over 500 million litres of petrol and ₦600 billion worth of petroleum products in stock.
Industry analysts warn that Nigeria’s heavy reliance on fuel imports could negatively impact the economy, particularly the naira’s stability. Business consultant Dan Kunle cautioned that continued dependence on dollar-denominated imports could erode recent gains in foreign exchange reserves.
“While local refining capacity is improving, structural challenges such as logistics, production scale-up, and supply chain inefficiencies still hinder progress,” Kunle noted.
