Nigeria’s Petrol Import Bill Falls to $10 Billion as Domestic Refining Boosts Energy Self-Sufficiency
Nigeria’s petrol import bill declined sharply to $10 billion in 2025, down from $14.06 billion in 2024, signaling a major shift toward domestic refining and export-driven growth. The latest Balance of Payments (BOP) report from the Central Bank of Nigeria (CBN) highlights that locally refined petroleum products are increasingly replacing imported fuel, easing the country’s import burden.
The reduction in imports is largely attributed to the operational ramp-up of the Dangote Refinery, whose production of refined petroleum products has begun to reshape Nigeria’s energy trade balance. In 2025, the refinery contributed $5.85 billion to export earnings, underscoring the rising economic impact of domestic refining on the nation’s trade and foreign exchange inflows.
Despite a slight decline in the overall current account surplus—from $19.03 billion in 2024 to $14.04 billion in 2025—Nigeria’s goods account remained strong, posting a $14.51 billion surplus. This reflects growing exports of refined products and natural gas, which are cushioning the economy against volatility in global crude oil prices. The data signals a structural shift in Nigeria’s energy sector, with domestic refining gradually reducing dependence on expensive fuel imports.
Historically, Nigeria has relied heavily on imported petrol and diesel, even while being a major crude oil exporter. The Dangote Refinery is gradually reversing this trend, supporting energy self-sufficiency and improving the country’s trade balance. Analysts say that as refining capacity expands, Nigeria is likely to further reduce its import dependency, a critical step toward stabilizing domestic fuel prices and strengthening macroeconomic resilience.
Plans are already underway to expand Dangote Refinery’s output from 650,000 barrels per day to 1.4 million barrels per day, which will make it the largest refinery in the world, surpassing India’s Jamnagar Refinery. The Federal Government has fully endorsed this expansion, calling it a “game-changer” for Nigeria, West Africa, and the broader continent, marking a milestone in the nation’s long-term energy policy and economic strategy.
source: nairametrics