Nigeria’s petrol import bill plunged sharply in the first nine months of 2025, driven by a surge in domestic refining that has significantly reduced dependence on foreign fuel supplies. Fresh data indicates that the country saved approximately N6.07 trillion in petrol import costs compared to the same period in 2024, representing a dramatic 52.82 per cent reduction year-on-year.
The downward trend intensified as the year progressed, with the third quarter of 2025 posting the steepest decline, recording more than 61 per cent in savings compared to the corresponding quarter in the previous year. Analysts say the drop reflects a structural shift in Nigeria’s energy landscape, as local refining begins to take hold after decades of stagnation.
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The primary force behind this transformation is the Dangote Petroleum Refinery, which ramped up operations through 2025. The 650,000-barrel-per-day facility began producing diesel and aviation fuel early in the year and added Premium Motor Spirit (petrol) output by September. This has sharply reduced the need for imported petro, a product that historically consumed billions of dollars in foreign exchange annually.
Government-owned refineries have also begun contributing. The partial resumption of the Port Harcourt Refinery, along with increased output from Nigeria’s growing network of modular refineries, has further strengthened domestic supply and reduced reliance on European importers that once dominated Nigeria’s fuel market.
Economists describe the development as a major boost for the country’s external reserves. With fewer dollars required for fuel importation, pressure on the foreign exchange market is expected to ease. The shift is also reshaping global trade dynamics, as Nigeria, formerly one of the world’s largest importers of refined fuel, continues to cut back orders from international suppliers.
Overall, the surge in local refining marks one of the most significant economic milestones of 2025, raising expectations for improved energy security and fiscal stability in the years ahead.
