Nigeria’s petrol import bill fell sharply in 2025 as domestic refining capacity expanded, with the country spending $10 billion on fuel imports, according to data from the Central Bank of Nigeria (CBN).
This represents a 28.88 per cent decline from $14.06 billion in 2024.
The apex bank attributed the decline largely to the start of Premium Motor Spirit (PMS) production at the Dangote Petroleum Refinery, which commenced operations on September 3, 2025 and has since emerged as both a major domestic supplier and exporter of refined petroleum products.
The 650,000-barrel-per-day facility exported approximately $5.85 billion worth of refined products during the year, helping to offset weaker crude oil earnings and supporting Nigeria’s goods account surplus.
According to the CBN’s 2025 Balance of Payments report, the goods account recorded a surplus of $14.51 billion, up from $13.17 billion in 2024, driven by higher gas exports and rising refined product shipments.
Gas export earnings rose 21.36 per cent to $10.51 billion, while non-oil exports expanded 24.80 per cent to $9.31 billion, reflecting gradual diversification in Nigeria’s export base.
Despite gains in refined product and gas exports, crude oil earnings declined 14.41 per cent year-on-year to $31.54 billion, highlighting persistent challenges in upstream production and global price volatility.
The refinery also imported $3.74 billion worth of crude oil feedstock, which contributed to a rise in Nigeria’s import bill even as refined fuel imports declined.
Nigeria’s current account surplus narrowed to $14.04 billion in 2025 from $19.03 billion the previous year, weighed down by rising non-oil imports, which increased 13.6 per cent to $29.24 billion, and a sharp rise in primary income outflows, including dividend and interest payments to foreign investors.
Overall, the country’s balance of payments recorded a surplus of $4.23 billion in 2025, compared with $6.83 billion in 2024, while external reserves climbed to $45.75 billion by year-end, up 13.83 per from the previous year.
Analysts say the sharp drop in petrol imports marks a structural turning point in Nigeria’s downstream oil sector, which for decades relied heavily on imported refined products despite being one of the world’s largest crude exporters.