Nigeria recorded a significant decline in petrol imports in the first quarter of 2026, with import expenditure falling by 96 per cent to ₦87.4 billion from ₦2.27 trillion recorded during the same period in 2025.
The sharp reduction has been linked to increased domestic refining capacity, particularly the growing output from the Dangote Petroleum Refinery, which has become a major supplier of fuel to the local market.
Domestic Refining Reduces Dependence on Imports
The 650,000 barrels-per-day Dangote Refinery is now estimated to be supplying about 80 per cent of Nigeria’s petrol requirements, significantly reducing the country’s reliance on imported fuel.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that local refineries supplied approximately 3.18 billion litres of petrol during the first quarter of 2026, while imports accounted for about 965 million litres.
The development marks a major shift for Nigeria, which for decades depended heavily on imported refined petroleum products despite being one of Africa’s leading crude oil producers.
Trade Surplus Records Major Growth
The reduction in petrol imports also contributed to an improvement in Nigeria’s external trade performance.
According to available data, the country’s trade surplus rose by 341 per cent to ₦7.55 trillion during the quarter, supported by crude oil exports, agricultural exports and growing contributions from refined petroleum products.
Analysts say lower fuel imports are helping Nigeria conserve foreign exchange and reduce pressure on the naira by cutting demand for dollars used to finance fuel purchases abroad.
Benefits Yet to Reflect Fully on Consumers
Despite the gains recorded at the macroeconomic level, many Nigerians continue to face high petrol prices.
Industry observers note that global oil market conditions, exchange rate pressures and distribution costs remain factors affecting pump prices across the country.
As a result, many consumers say the reduction in imports and increased local refining have yet to translate into noticeable relief in transportation and living costs.
Outlook for the Sector
The expansion of domestic refining is widely seen as a major milestone in Nigeria’s quest for energy self-sufficiency.
With the Dangote Refinery expected to sustain production and potentially expand capacity in the future, experts believe Nigeria could further reduce fuel imports and strengthen its position as a supplier of refined petroleum products to neighbouring countries.
