Fuel Import Costs Drop 54% in Two Years as Local Refining Gains Momentum

Nigeria’s spending on imported refined petroleum products has fallen sharply by 54 per cent over the past two years, signalling growing progress in domestic refining capacity and reduced dependence on foreign fuel supplies.

Data from official economic records show that the country’s fuel import bill declined from about $14.6 billion in the first nine months of 2023 to roughly $6.7 billion during the same period in 2025. The reduction was gradual at first, dropping to around $11.4 billion in 2024 before recording a steeper fall in 2025.

Experts attribute the sustained decline to a mix of policy reforms, improved foreign exchange management, and increased output from local refineries, which have begun supplying larger volumes of petrol and other refined products to the domestic market.

The reduction in fuel imports has helped ease pressure on Nigeria’s foreign exchange reserves, as petroleum products have historically been one of the country’s largest sources of dollar demand. Increased local refining has also strengthened energy security and reduced exposure to global supply disruptions.

Despite the progress, Nigeria still spent an estimated $6.7 billion on fuel imports in 2025, indicating that full self-sufficiency in refined petroleum products has not yet been achieved. Analysts stress that sustained investment, efficient operations, and supportive policies are needed to further cut import dependence.

Overall, the significant drop in fuel import costs reflects a major shift in Nigeria’s energy landscape, highlighting the impact of expanding domestic refining capacity on the broader economy.