Nigeria spent N4 trillion on fuel imports in the first half of 2025, underscoring its heavy reliance on foreign refined products despite growing local refining capacity.
Data from the National Bureau of Statistics (NBS) shows imports reached N2.3 trillion in Q2, following N1.76 trillion in Q1. At an average exchange rate of N1,550 per $1, this amounts to approximately $2.58 billion.
Import Pressure Persists
Nigeria spent N15.4 trillion on fuel imports in 2024, a bill that significantly depleted its foreign reserves and contributed to the volatility of the naira. Analysts warn that unless local refineries ramp up production, the 2025 bill could equal or exceed last year’s figure.
Petrol Leads Import Basket
Petrol remained Nigeria’s largest import from the ECOWAS region, accounting for N208.76 billion in Q2 2025. Other imports from the bloc included silk fabrics valued at N69.3 billion.
Across all categories, petrol ranked among the top five imports, alongside durum wheat, gas oil, crude petroleum, and cane sugar for refineries. This reinforces how energy products dominate Nigeria’s import profile and expose supply gaps in the downstream petroleum sector.
Experts Call for Stronger Refining Push
Energy analysts argue that the figures highlight Nigeria’s incomplete transition from imports to local refining.
Dr. Muda Yusuf, CEO of the Centre for Promotion of Private Enterprises (CPPE), noted:
“The numbers confirm we are still importing. Domestic refining has not taken root. There are interests in the system that benefit from importation. Government must implement fiscal measures that discourage imports and strengthen backward integration.”
Industry analyst Bola Akani added:
“Until local refining becomes consistent, fuel imports will remain a huge drag. Spending N4 trillion in two quarters shows reforms in the downstream sector are still too slow.”
Global Trade Dynamics
The report comes as Nigeria’s trade flows experience unusual shifts. For the first time in July 2025, Nigeria imported more crude oil from the United States than it exported, according to the U.S. Energy Information Administration (EIA).
The shift, which started in February and March 2025, stemmed from weaker U.S. East Coast demand and higher feedstock needs at the Dangote Refinery.
Commissioned in January 2024, Dangote’s 650,000 b/d facility is projected to hit full capacity later this year. To expand its market reach, the refinery has also unveiled plans to build storage tanks in Namibia to supply up to 1.6 million barrels of gasoline and diesel to southern Africa.
Outlook
Nigeria’s N4 trillion fuel import bill in just six months highlights the urgent need to accelerate domestic refining. While Dangote and other plants are gradually scaling up, experts caution that without steady output and targeted policy support, imports will remain a costly strain on the economy.