Why Nigeria Still Spends ₦9 Trillion on Petrol Imports in 2025

Nigeria’s petrol import bill reached ₦8.96 trillion in 2025 despite new local refinery capacity. This was a 41.9% drop from 2024’s record ₦15.42 trillion, but still 19.3% above 2023 levels after fuel subsidy removal. Domestic refineries supplied 37.5% of the 18.97 billion litres consumed, while imports covered 62.5%. Quarterly data show imports falling in Q3 before a sharp 174.4% surge in Q4, accounting for nearly 40% of annual spending. Analysts warn the imbalance between refining capacity and output strains energy security and foreign exchange. Concerns also swirl around licensing control under the Petroleum Industry Act and crude supply to the Dangote Refinery. Experts urge a strategic petroleum reserve and better feedstock logistics to reduce import dependence and support Nigeria’s energy transition.

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