Nigeria spent N1.28 trillion on fuel imports in the third quarter of 2025, new data from the National Bureau of Statistics (NBS) showed on Thursday. The figure is far lower than the N2.3 trillion spent in the previous quarter, but it still shows how much the country depends on imported fuel.
The report comes at a time when Nigeria is trying to fix its supply gaps and grow its local refining capacity. The fall in import costs is linked to supply limits, high global oil prices, and weak output from domestic refineries. The country still imports most of its petrol because local plants are not yet fully active.
Nigeria’s fuel import burden has grown over the years. In 2024, the country spent N15.4 trillion on fuel imports. This put huge pressure on the nation’s foreign reserves. It also helped push up the value swings of the naira that year.
The trend has been building for half a decade. In 2020, fuel imports cost N2.01 trillion. In 2021, this jumped 126.9% to N4.56 trillion. By 2022, costs rose again by 69.1% to N7.71 trillion as crude prices climbed and local refining stayed weak.
There was a slight fall in 2023, when Nigeria spent N7.51 trillion on imports. Analysts said this drop was due to lower crude prices and a short period of foreign exchange adjustments. But in 2024, import costs surged by 105.3% to N15.42 trillion. A sharp 40.9% fall in the naira made imports far more expensive.
This heavy import record has made many Nigerians eager for a turnaround. Hope grew in October when Dangote Refinery said it planned to expand its output from 650,000 barrels per day to 1.4 million barrels per day. Once complete, the plant will be the world’s largest refinery.
Analysts say this expansion could change Nigeria’s fuel story. “This could make Nigeria a top refining hub for Africa,” one energy analyst said. “It can meet our local fuel demand and even supply other countries.”
The Federal Government has backed the plan. Officials called the expansion a “game-changer for Nigeria, West Africa, and the continent.” Many industry watchers see it as the best chance for Nigeria to cut its long-term import bill.
Nigeria’s crude production is also rising, though slowly. OPEC data showed that output moved up from 1.401 million barrels per day in October to 1.436 million barrels per day in November.
Fuel use at home is shifting as well. Latest government data showed that daily petrol consumption dropped to 52.9 million litres in November 2025. Experts say this may reflect higher pump prices, better tracking of fuel flows, and reduced smuggling.
Still, the heavy cost of fuel imports continues to worry many. “Every time we import fuel, we lose money that could help our roads, schools, and hospitals,” a Lagos-based economist said. “Local refining is our best way out.”
As the country waits for major refineries to run at full scale, the import bill remains a reminder of a problem that has lasted for decades. But with new investments and stronger output data, many Nigerians hope the tide may soon turn.
Read also: Suspension of 15% fuel tariff undermines domestic refiners’ competitiveness – CPPE
