Nigeria’s Central Bank released $1.26bn to oil marketers for fuel imports, highlighting competition between Dangote Refinery and independent importers.
The Central Bank of Nigeria (CBN) has released $1.26 billion to oil marketers for the importation of petroleum products in the first quarter of 2025, underscoring the country’s ongoing reliance on foreign fuel despite ramped-up output from the Dangote Petroleum Refinery.
Data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that between January and March 2025, the CBN disbursed funds to operators in three tranches — $457.83 million in January, $283.54 million in February, and $517.55 million in March.
The allocation comes amid growing efforts by the Nigerian government to achieve energy self-sufficiency and reduce dependence on imported refined products. Yet, petroleum marketers still accounted for about 69 percent of the 21 billion liters of petrol consumed nationwide between August 2024 and early October 2025, according to official figures.
Despite a gradual decline in imports, foreign-sourced petrol remains dominant in the Nigerian market. In the first quarter of 2025 alone, the country imported roughly 2.28 billion liters of petrol — 724.5 million liters in January, 760 million liters in February, and 803.7 million liters in March.
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Analysts warn that continued fuel importation exerts pressure on Nigeria’s foreign reserves and weakens the Naira, as petroleum remains one of the nation’s biggest foreign exchange consumers.
The import pattern has also intensified competition between the 650,000-barrel-per-day Dangote Refinery and independent marketers. While the refinery has declared readiness to meet domestic demand, it has exported products to markets including the United States, reportedly due to price disparities in Nigeria.
Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said pricing remains the decisive factor for marketers. “Marketers will always buy from the cheapest source,” he noted. “If imported products are cheaper, we’ll import. But if Dangote offers a better price, we’ll buy locally.”
Industry experts attribute price gaps between imported and locally refined fuel to fluctuations in global oil prices, exchange rate instability, and government fiscal policies.
A separate report by the Major Energies Marketers Association of Nigeria (MEMAN) estimated the current import parity price of petrol at ₦805.46 per liter, reflecting persistent volatility in both global energy markets and Nigeria’s currency exchange system.
