The Central Bank of Nigeria (CBN) has released a total of $1.25 billion to support the importation of petroleum products and related items between January and March 2025, according to fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The intervention comes amid an ongoing tug-of-war between fuel importers and the Dangote Refinery, which has ramped up its local production capacity.
Despite the availability of refined petrol from Dangote’s 650,000-barrel-per-day refinery, petroleum marketers reportedly imported 69 percent of the 21 billion litres of petrol consumed in Nigeria between August 2024 and early October 2025. Within the first quarter of 2025 alone, 2.28 billion litres of petrol were imported—one of the lowest quarterly import figures in recent years, signalling a slow but steady transition toward local refining and blending.
According to the CBN’s first-quarter statistical bulletin, the apex bank disbursed $457.83 million in January, $283.54 million in February, and $517.55 million in March to support oil sector imports. While January saw 724.5 million litres of petrol brought in, February and March recorded 760 million litres and 803.7 million litres respectively. Analysts say these figures reflect a delicate balance between forex management, local refining output, and pricing dynamics within the oil market.
The downstream sector has become a battleground for market dominance between the Dangote Petroleum Refinery and traditional fuel importers. While Dangote continues to export petrol to markets such as the United States, many Nigerian marketers remain tied to importation due to price competitiveness. “In this business, pricing is everything,” said Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN). “Marketers will always buy from the source offering the lowest price, whether local or foreign.”
Meanwhile, the Major Energies Marketers Association of Nigeria (MEMAN) noted in its latest Energy Bulletin that the import parity price of Premium Motor Spirit (PMS) has dropped to ₦805.46 per litre, reflecting the effects of global oil price declines and exchange rate fluctuations. Industry experts believe that as local refining scales up and forex availability tightens, Nigeria could see a gradual reduction in fuel import dependence—though pricing and competition will continue to dictate supply choices in the near term.
source: punch