Nigeria spends N9tn importing petrol

Nigeria’s dependence on imported petrol endured in 2025, with oil entrepreneurs spending N8.96tn on Premium Motor Spirit (petrol) imports between January and December, regardless of elevated investments in home refining capability.

An evaluation of the newest overseas commerce information launched by the Nationwide Bureau of Statistics on Thursday confirmed that petrol, code-named “Motor spirit unusual,” remained one of the crucial imported commodities all year long, reflecting ongoing provide gaps within the downstream sector.

The NBS stated petrol import prices had been N8.96tn in 2025, however represented a decline of N6.46tn or about 41.9 per cent from the N15.42tn recorded in 2024, however nonetheless stood N1.45tn or roughly 19.3 per cent increased than the N7.51tn posted in 2023 when gas subsidy was eradicated by the present administration.

This newest growth comes days after The PidomNigeria solely reported that Home refineries imported crude oil price N5.734tn between January and December 2025, exposing a deepening provide paradox within the nation’s oil sector and an obsession for imports.

The gas import expenditure got here at a time when expectations had been excessive for a decline in reliance on overseas provide following vital investments in native refining.

This development endured regardless of the graduation of operations, regular ramp-up in manufacturing and distribution of petrol by home refineries, notably the Dangote Petroleum Refinery, alongside state-owned refineries and several other modular amenities.

Information from the Nigerian Midstream and Downstream Petroleum Regulatory Authority printed lately revealed that whole petrol consumption stood at 18.97 billion litres in 2025, with 11.85 billion litres, representing 62.47 per cent, provided by imports.

Whereas home refineries contributed about 7.54 billion litres, accounting for 37.53 per cent of whole consumption.

However within the new NBS doc, which focuses on the worth of merchandise, the info confirmed a fluctuating however sustained petrol import sample, with expenditure rising by N0.62tn, or about 35.2 per cent, from N1.76tn within the first quarter to N2.38tn within the second quarter, earlier than dropping sharply by N1.09tn, or roughly 45.8 per cent, to N1.29tn within the third quarter.

Nonetheless, imports rebounded strongly within the fourth quarter, surging by N2.25tn, or about 174.4 per cent, to N3.54tn, the best quarterly expenditure recorded within the 12 months.

Total, the fourth-quarter spike accounted for almost 40 per cent of whole annual imports, underscoring persistent provide pressures and seasonal demand fluctuations. The statistics company didn’t present a breakdown of the worth imported month-to-month.

Breakdown of the figures confirmed that petrol was the second most imported product within the first quarter at N1.76tn, and in addition ranked because the second highest import from African nations, with N89.18bn largely sourced from Togo throughout the ECOWAS sub-region.

By the second quarter, petrol had risen to grow to be Nigeria’s high imported product at N2.38tn, sustaining its dominance throughout African, West African, and ECOWAS commerce corridors, the place imports stood at N208.76bn.

Nonetheless, the development shifted within the third quarter, when import worth dropped to N1.29tn, making petrol the third most imported product globally through the interval. Notably, no imports had been recorded from African or ECOWAS nations in that quarter, indicating a shift in direction of various worldwide suppliers.

Within the fourth quarter, petrol imports rebounded strongly to N3.54tn, reclaiming its place as essentially the most imported commodity. Inside Africa, it ranked because the second-highest import at N84.69bn, with Togo once more that includes prominently amongst regional suppliers.

Within the fourth quarter, petrol imports from Brazil had been valued at N221.15bn, whereas the Netherlands emerged as one among Nigeria’s largest suppliers with shipments price N1.22tn in the identical interval.

Total, the product’s share of whole commerce mirrored a fluctuating however rising development, accounting for 11.42 per cent within the first quarter, rising to fifteen.54 per cent within the second quarter, earlier than dropping to 7.98 per cent within the third quarter and rebounding sharply to twenty.52 per cent within the fourth quarter.

Additional evaluation confirmed that Nigeria sourced petrol from a various combine of nations, together with the Netherlands, the US, Belgium, Brazil, and Togo, highlighting the worldwide nature of its gas provide chain.

Regardless of the operational take-off of the Dangote Refinery and ongoing rehabilitation of state-owned refineries, import dependence stays deeply entrenched.

Over the previous 5 years, Nigeria’s petrol import invoice has steadily risen. In 2020, the nation spent N2.01tn on gas imports, greater than doubling to N4.56tn in 2021.

By 2022, the determine additional elevated to N7.71tn earlier than barely declining to N7.51tn in 2023. Nonetheless, in 2024, gas import expenditure surged to an all-time excessive of N15.42tn, marking the biggest petrol import invoice in Nigeria’s historical past.

The figures spotlight a structural imbalance between refining capability and precise output, noting that whereas put in capability has improved, feedstock constraints, logistics challenges, and market dynamics proceed to restrict efficiency.

Power analysts warn that the continued reliance on imports, regardless of elevated refining capability, raises issues about power safety, overseas alternate stress, and the sustainability of the downstream market.

Commenting, the Managing Associate at Power Consulting Apply, Kelvin Emmanuel, accused the Presidency of sustaining tight management over licensing selections in Nigeria’s oil and gasoline sector, in what he described as a violation of the provisions of the Petroleum Trade Act.

Talking in a phone interview on Thursday, Emmanuel stated, “The State Home has refused at hand off its management in dictating to the authority who will get a licence or not, and has ignored calls persistently to adjust to Sections 317, and seven to 11 of the PIA.”

He additional raised issues over crude provide challenges going through the Dangote Refinery, noting that the power was nonetheless closely reliant on imports regardless of its scale.

“Dangote is presently importing about 10 million barrels out of the 18 million barrels he processes month-to-month. The one lucky a part of this disaster is that Lagos sits on the Atlantic Basin, so he can simply ship in crude from Houston or Brazil,” he stated.

Emmanuel criticised the Federal Authorities’s much-publicised naira-for-crude initiative, arguing that structural points throughout the oil market had been undermining its effectiveness.

“The federal government retains touting the naira-for-crude initiative, when in actuality it’s both the NNPC isn’t giving him crude as a result of most of it’s locked in forwards which were pre-sold, or business operators are routing their feedstock at further commissions exterior the fiscal oil worth,” he said.

He added that Nigeria should take deliberate steps to safeguard home refining by establishing a nationwide buffer inventory. “The Nigerian Authorities must develop a strategic petroleum reserve that’s codified by an Act of Parliament, to serve home refiners,” Emmanuel stated.

The sustained reliance on overseas petrol provide underscores the challenges going through Nigeria’s power transition, because the nation grapples with aligning its upstream assets with downstream capability.

As Africa’s largest oil producer, the paradox of importing a majority of its refined gas wants continues to outline Nigeria’s petroleum sector, a development that policymakers say have to be urgently reversed to attain true power independence.