Nigeria Spends N930bn on Fuel Imports in February Despite Rising Local Refining Capacity
Nigeria imported petrol and diesel in February 2025 valued at about N930 billion, despite rising local refining capacity, raising questions as to the economic sense behind the licensing of oil marketers to bring in fresh petroleum products.
Data on the importation of the fuels last month, showed that aside from the N930 billion bill in February, oil marketers licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), imported products worth N5.5 trillion between October 2024 and January this year.
“These significant import figures come at a time when local refining output is increasing. Two of NNPC’s four refineries, in Warri and Port Harcourt, have reportedly resumed operations, while private refineries such as Dangote Refinery, Waltersmith, and Aradel are actively producing.
“Despite these positive developments, the continued large-scale importation of refined petroleum products underscores structural bottlenecks in the industry, including logistics challenges, production scale-up issues, and supply chain inefficiencies,” Kunle explained.
According to him, reducing import reliance will require accelerated refinery optimisation, competitive local pricing structures, and strengthened regulatory frameworks to incentivise domestic supply over costly imports.
Kunle stressed that the continued large-scale dollar-denominated imports could reverse these gains that the naira garnered in the last few months, putting additional pressure on foreign exchange reserves.
