Nigeria spent ₦1.19 trillion importing crude oil in the first quarter of 2025, despite being Africa’s largest oil producer. This made it the nation’s third most imported commodity, according to data from the National Bureau of Statistics (NBS).
The paradox reveals deep structural inefficiencies in the country’s downstream oil sector and underscores the growing pressure on local refineries to secure reliable international feedstock.
Crude oil imports, listed as “Petroleum oils and oils obtained from bituminous minerals, crude,” accounted for 7.7% of Nigeria’s total imports in the first quarter, trailing only gas oil (₦1.83 trillion) and motor spirit (₦1.76 trillion). The country’s total petroleum-related imports stood at a staggering ₦4.78 trillion, making up over 30% of the total ₦15.43 trillion import bill for the quarter.
The surge in foreign crude purchases stems from erratic domestic supply, which has left even major facilities like the Dangote Refinery and smaller modular plants turning to more reliable international sources. U.S. exports alone made up ₦726.84 billion (or 61%) of Nigeria’s crude imports. Angola and Algeria followed with ₦223.58 billion and ₦122.37 billion, respectively.
Domestic policies fall short, refineries look abroad
The current wave of imports signals the failure of key domestic supply policies such as the Domestic Crude Supply Obligation (DCSO) and Domestic Crude Refining Requirement (DCRR), designed to prioritise local crude allocation to indigenous refineries. Instead, refineries have resorted to international markets to maintain production schedules and profitability.
“Refiners are simply going where the supply is stable and predictable,” an industry analyst told Reuters. “They can’t wait indefinitely for local allocations that don’t arrive.”
This trend has broader economic implications. Nigeria exported ₦12.96 trillion worth of crude and petroleum products in Q1 2025, making up 62.89% of its total exports. While India, the Netherlands, the U.S., France, and Spain remain major destinations, the country’s domestic refining capacity is lagging, raising questions about its self-sufficiency goals.
Systemic misalignment threatens self-sufficiency goals
Crude oil exports declined 16.35% year-on-year and 6.01% quarter-on-quarter in Q1 2025 but still dominate Nigeria’s export portfolio. Meanwhile, the reliance on imported fuel and crude has exposed vulnerabilities in a sector long championed as the backbone of Nigeria’s economy.
Mineral fuels remain the top import category, with a total value of ₦4.97 trillion (32.23% of total imports). The United States is now Nigeria’s third-largest trade partner, primarily because of its crude oil exports to Nigeria.
“The contradiction is glaring,” said a downstream expert. “How can we produce so much crude yet import the same product for local processing? Until policies are matched with enforcement, we’ll keep burning scarce forex to buy what we already have.”
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