Nigeria, despite being Africa’s largest oil producer, imported crude oil worth N1.19 trillion in the first quarter of 2025 due to a critical shortage in domestic supply to local refineries. Data from the National Bureau of Statistics revealed that imported crude was Nigeria’s third-most imported product in Q1, trailing only gas oil and motor spirit. The United States accounted for 61% of the imported crude, followed by Angola and Algeria, underscoring local refineries’ growing dependence on foreign crude amidst domestic production issues.
The surge in crude imports highlights systemic failures in aligning domestic crude production with refinery needs. Local refineries, including the high-capacity Dangote Refinery and several modular plants, are operating below capacity due to the near-zero allocation of crude through the Domestic Crude Oil Supply Obligation (DCSO). Industry stakeholders, such as the Crude Oil Refinery-owners Association of Nigeria (CORAN), confirmed that local refineries had received no allocations under the DCSO framework, forcing them to make private import arrangements.
The situation has prompted regulatory intervention. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently banned the export of crude oil designated for local refineries, declaring such diversions a legal violation. However, experts remain skeptical about enforcement, noting that producers often prioritize foreign exchange gains over domestic supply commitments. About 500,000 barrels per day intended for local refining reportedly continue to be exported illegally.
Stakeholders, including CORAN and the Petroleum Products Retail Outlets Owners Association of Nigeria, have urged President Bola Tinubu’s administration to prioritize support for domestic refiners. They argue that consistent supply, reduced licensing costs, and incentives are critical to enabling local production and protecting Nigeria’s currency. Refiners claim that despite their contribution to the economy, more incentives still go to importers.
In total, Nigeria’s petroleum-related imports—gas oil, motor spirit, and crude—totaled over N4.78tn in Q1 2025, representing more than 30% of total imports. Meanwhile, crude oil exports brought in N12.96tn, accounting for 62.89% of total exports, despite a decline from previous quarters. These figures reveal Nigeria’s paradoxical position: exporting most of its crude while importing refined products and raw crude due to structural inefficiencies in its oil sector.