The Central Bank of Nigeria (CBN) allocated $1.26 billion to facilitate the importation of petroleum products and related goods in the first quarter of 2025, despite increased domestic refining capacity from the Dangote Refinery, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Between January and March 2025, Nigeria imported 2.28 billion liters of petrol, accounting for 69% of the 21 billion liters consumed from August 2024 to early October 2025. The import volume, one of the lowest in recent years, signals a gradual shift toward local refining. However, petroleum marketers continue to rely on imports due to competitive pricing.
CBN’s quarterly bulletin details a month-by-month breakdown: $457.83 million was released in January (36.2% of the total), $283.54 million in February (22.5%), and $517.55 million in March (41.3%). Meanwhile, NMDPRA reported import volumes of 724.5 million liters in January, 760 million liters in February, and 803.7 million liters in March.
The Dangote Refinery, with a capacity of 650,000 barrels per day, has ramped up production and begun exporting petrol to markets like the United States. However, pricing remains a key factor for marketers. Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, emphasized that cost drives purchasing decisions. “Marketers prioritize affordability,” Ukadike said. “Whether it’s Dangote or imports, we go where prices are lowest to stay competitive.”
Fluctuations in global oil prices, exchange rates, and government policies continue to influence the price gap between local and imported fuel. The Major Energies Marketers Association of Nigeria reported a drop in the import parity price of Premium Motor Spirit to N805.46 per liter, reflecting global oil price trends and exchange rate dynamics.
As competition intensifies between Dangote Refinery and fuel importers, Nigeria’s downstream sector remains at a crossroads, balancing local production with cost-driven import reliance.
