Nigeria’s foreign exchange demand for oil-sector imports rose sharply by 114.91 per cent in 2025, underscoring the country’s continued reliance on imported petroleum products and related inputs even as domestic refining capacity expanded.
According to the Central Bank of Nigeria’s 2025 Annual Report and Statement of Accounts, foreign exchange utilised for oil sector imports climbed to $4.86 billion from about $2.26 billion in 2024. Petroleum-related imports ranked as the second-largest consumer of foreign exchange among visible imports, accounting for 25.91 per cent of total import-related FX utilisation during the year.
Overall FX Utilisation Rises
Aggregate foreign exchange utilisation across the economy increased by 59.36 per cent to $42.83 billion from $26.88 billion in 2024, driven largely by higher demand for invisible imports and import-related transactions.
Visible imports accounted for $18.76 billion, or 43.80 per cent of total FX utilised, up from $15.62 billion the previous year. Within visible imports, the industrial sector remained the largest consumer at 42.11 per cent, followed by the oil sector at 25.91 per cent. Manufactured products took 15.64 per cent, food products 10.51 per cent, transport 3.78 per cent, minerals 1.04 per cent and agriculture 1.00 per cent.
Oil sector imports recorded the sharpest rise among major categories, climbing 114.91 per cent to $4.86 billion. Utilisation for manufactured products increased 61.70 per cent to $2.93 billion, transport rose 52.17 per cent to $0.71 billion, and agriculture grew 20.71 per cent to $0.19 billion. By contrast, industrial sector utilisation edged down 0.76 per cent to $7.90 billion, food products fell 22.01 per cent to $1.97 billion, and minerals dropped 54.85 per cent to $0.19 billion.
Invisible Transactions Dominate
Foreign exchange used for invisible transactions reached $24.07 billion, or 56.20 per cent of the total, rising 113.83 per cent from $11.26 billion in 2024. Financial services dominated this category, accounting for 92.12 per cent of invisible imports after increasing 125.25 per cent to $22.18 billion. Transport services rose 41.46 per cent to $0.57 billion. Tourism and travel-related services stood at $3.72 billion, business services at $1.15 billion, and health-related and social services at $0.03 billion. Utilisation for communication, education and other services declined.
Domestic Refining Progress Versus Continued Imports
The rise in oil-sector FX demand occurred even as Nigeria expanded its domestic refining capacity. The 700,000-barrels-per-day Dangote Petroleum Refinery continued to ramp up production. In 2025, however, petrol imports still accounted for 62.47 per cent of national Premium Motor Spirit consumption. Total petrol consumption reached approximately 18.97 billion litres, of which oil marketing companies imported 11.85 billion litres, while domestic refineries supplied about 7.54 billion litres, or 37.53 per cent.
The picture improved in the first half of 2026, with Dangote emerging as the dominant domestic supplier and petrol importation falling by 65.7 per cent. The Federal Government has repeatedly stated that greater domestic refining should reduce dependence on imported products, conserve foreign exchange, strengthen energy security and improve the balance of payments.
Pricing, however, remains the decisive factor for marketers. Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, said operators prioritise the lowest available cost. “In this business, pricing is everything. Marketers will always go for the most affordable option because our margins are very thin. If imported products are cheaper, we have no choice but to patronise importers. But if Dangote’s refinery offers a better price, of course, we will buy locally,” he said.
Petroleum-related import bills extend beyond finished petrol and include crude oil swaps, refined products, lubricants, petrochemical feedstocks, refinery equipment, catalysts, additives and other downstream inputs. Dangote itself imported crude oil worth N5.73 trillion in 2025.
Despite downstream reforms following full petrol market deregulation and growing competition between domestic refiners and importers, the CBN data indicate that reducing Nigeria’s foreign exchange dependence for petroleum imports remains a work in progress.
