Petrol Dominates Nigeria’s Imports with 613.6 Million Litres in One Year

Petrol has emerged as Nigeria’s leading import commodity, with the nation importing an estimated 613.6 million litres of Premium Motor Spirit (PMS) within a single year, according to recent trade and customs data. The staggering volume highlights the country’s continued dependence on imported refined petroleum products despite having one of Africa’s largest crude oil reserves and a growing number of domestic refineries.

The data, which covers a 12-month period ending in mid-2025, revealed that petrol imports accounted for a significant share of Nigeria’s total import bill, outpacing other essential commodities such as wheat, machinery, and pharmaceuticals. The surge in petrol importation has been attributed to lingering challenges in domestic refining capacity, foreign exchange pressures, and the slow pace of full-scale operations at newly constructed refineries.

Experts note that the development underscores Nigeria’s persistent energy paradox — a nation rich in crude oil but still heavily reliant on imported fuel to meet local demand. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) estimated that the country consumes between 45 and 50 million litres of petrol daily, most of which is imported through licensed marketers and trading companies.

A senior energy analyst, Dr. Chika Eze, commented that the situation continues to strain Nigeria’s foreign reserves and expose the economy to global price volatility. “Nigeria’s heavy reliance on imported petrol means that fluctuations in global crude oil prices, shipping costs, and exchange rates directly affect domestic fuel prices and inflation,” Eze said. “Until we achieve full domestic refining capacity, this cycle will persist.”

The Nigerian National Petroleum Company Limited (NNPC Ltd.), which remains the primary importer of petrol, has been under pressure to reduce its import dependency through the rehabilitation of state-owned refineries and strategic partnerships with private operators. However, the delayed completion of refinery projects in Port Harcourt, Warri, and Kaduna has continued to limit progress.

Industry observers had hoped that the Dangote Refinery, with its 650,000 barrels per day capacity, would significantly cut Nigeria’s fuel import needs. Although the refinery began production earlier in the year, its full integration into domestic fuel supply chains has been gradual due to logistical, regulatory, and market alignment processes. The plant’s management recently confirmed that crude inflows and output are being adjusted in response to price fluctuations in the global oil market.

Despite these challenges, government officials have reiterated their commitment to achieving energy self-sufficiency. The Minister of Petroleum (Oil), Senator Heineken Lokpobiri, stated that ongoing efforts to stabilise local refining would eventually reverse Nigeria’s dependence on fuel imports. “Our target is to ensure that Nigeria refines what it consumes,” he said. “Once all refineries, both public and private, are fully operational, importation will drastically reduce, saving billions of dollars in foreign exchange.”

However, importers and marketers continue to grapple with rising landing costs, freight charges, and exchange rate volatility, which have collectively pushed pump prices higher across the country. According to market reports, petrol prices currently range between N850 and N950 per litre in some regions, depending on transportation and depot costs.

The rising import volume has also drawn criticism from economists who argue that it undermines the government’s foreign exchange management efforts. Nigeria’s foreign reserves, which recently rebounded to $43 billion, face renewed pressure from sustained import spending on petroleum products.

Professor Adewale Fashola, an energy economist, described the trend as “unsustainable.” He noted that “fuel importation remains one of the largest drains on Nigeria’s external reserves and a key contributor to exchange rate instability. The sooner the country transitions to domestic refining, the better for macroeconomic stability.”

In response to these concerns, the Nigerian government is exploring policy measures to support refinery investments and incentivise private sector participation in downstream operations. The deregulation of the petroleum sector, introduced in 2023, was expected to attract fresh capital and increase competition among fuel marketers. Although progress has been gradual, experts believe the market will eventually stabilise as local refineries ramp up production.

Meanwhile, import data also showed that while petrol dominated Nigeria’s import list, other energy-related products such as diesel and aviation fuel recorded moderate import volumes. The country’s import bill for machinery, electronics, and manufactured goods also remained high, reflecting the structural imbalance between production and consumption.

The Nigerian Customs Service (NCS) noted that the importation of fuel products has continued to generate substantial customs revenue despite the broader economic implications. “Petrol remains one of the highest revenue-yielding imports, even though it contributes to pressure on the exchange rate,” an NCS official stated.

Stakeholders have called for a more aggressive implementation of industrial and energy policies aimed at boosting domestic refining, cutting import dependency, and stabilising the naira. They argue that achieving this balance is essential for Nigeria’s long-term energy security and economic diversification goals.

As the government pushes ahead with reforms in the oil and gas sector, the coming months will test the effectiveness of its strategies to reduce importation, promote refinery output, and ensure energy affordability for millions of Nigerians. For now, however, petrol remains the country’s dominant import — a reflection of deep-rooted structural challenges and the urgent need for sustainable energy solutions.