The Central Bank of Nigeria has disbursed a total of $1.26 billion to operators in the oil sector for the importation of petroleum products and related items in the first quarter of 2025.
The release comes amid marketers’ continued preference for imported fuel despite the availability of petrol from the Dangote Refinery.
Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that petroleum marketers accounted for 69 per cent of the 21 billion litres of petrol consumed in Nigeria between August 2024 and October 10, 2025, according to The Punch.
Between January and March 2025, petroleum marketers imported a total of 2.28 billion litres of petrol, despite increased domestic output from the Dangote Refinery.
Fuel imports remain a major drain on foreign exchange, affecting Nigeria’s external reserves and the naira’s exchange rate against the dollar.
The volume recorded ranks among the lowest quarterly import levels in recent years, signaling a gradual shift toward domestic refining and blending of petroleum products.
According to the Central Bank of Nigeria’s first-quarter 2025 statistical bulletin, the apex bank released a total of $1.26 billion for import transactions between January and March.
A month-by-month analysis showed that $457.83 million was disbursed in January, accounting for 36.2 per cent of the total. This fell sharply to $283.54 million in February, or 22.5 per cent, before rising to $517.55 million in March—the highest for the quarter—representing 41.3 per cent of total forex released.
NMDPRA data further indicated that fuel imports stood at 724.5 million litres in January, 760 million litres in February, and 803.7 million litres in March.
The battle for market dominance between the Dangote Petroleum Refinery and fuel-importing marketers has intensified in recent months, with both sides vying for a stronger foothold in Nigeria’s downstream sector.
While many marketers have continued to rely on imports, the Dangote Refinery has been exporting petrol to several countries, including the United States. The 650,000-barrel-per-day facility maintains that it can fully meet Nigeria’s fuel demand while sustaining exports to international markets.
However, pricing remains the key factor influencing marketers’ choice of suppliers amid the intensifying competition between the Dangote Refinery and fuel importers. Many downstream operators continue to switch sources based on cost advantage rather than origin.
Confirming this trend, the National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers would always purchase from the most affordable source to remain competitive in the market.
Ukadike said “In this business, pricing is everything. Marketers will always go for the most affordable option because our margins are very thin. If imported products are cheaper, we have no choice but to patronise importers. But if Dangote’s refinery offers a better price, of course, we will buy locally.”
He added that the price difference between locally refined products and imported fuel fluctuates with changes in global crude prices, exchange rates, and prevailing government policies.
“No marketer can afford sentiment when it comes to survival,” he said. “Our decision is driven by economics, not emotion.”
