Nigeria Slashes Petrol Import Bill By $4 Billion As Dangote Refinery Boosts National Refining Capacity

CBN data shows a 28.88% drop in petrol imports as Dangote Refinery output nears full capacity, saving Nigeria $4.06 billion in foreign exchange during 2025.

By: AXL Media

Published: Mar 24, 2026, 9:26 AM EDT

Source: The information in this article was sourced from LEADERSHIP Media Group

A Decisive Shift Toward Energy Independence And Domestic Sufficiency

Nigeria has achieved a major milestone in its quest for energy security by significantly reducing its historical reliance on foreign fuel. Data from the Central Bank of Nigeria’s 2025 balance of payments report reveals that the nation’s petrol import bill plummeted by $4.06 billion within a single calendar year. This transition marks a fundamental change for a country that has spent decades vulnerable to global supply chain disruptions and volatile international oil prices. The 2025 expenditure of $10 billion represents the lowest proportional spend on imported fuel in recent years, signaling a new era of domestic processing.

The Role Of The Dangote Refinery In Reshaping Trade Dynamics

The primary driver behind this economic shift is the 650,000-barrel-per-day Dangote Refinery located in Lagos. Since officially commencing petrol production on September 3, 2025, the facility has effectively filled the supply gaps that previously necessitated massive imports. Beyond meeting internal demand, the refinery has transformed Nigeria’s trade profile by facilitating the export of $5.85 billion worth of refined petroleum products. This reversal of the traditional trade flow has not only saved foreign exchange but has introduced a significant new revenue stream for the Nigerian economy.

Strengthening The National Goods Account Amidst Export Growth

The impact of localized refining extends into the broader national accounts, contributing to a goods account surplus of $14.51 billion in 2025. This surplus outperformed both 2024 and 2023 figures, supported by a diverse array of energy exports. While refined products provided a new boost, gas exports also grew by over 21 percent, reaching a total of $10.51 billion. These gains have provided a necessary cushion for the economy during a period when traditional crude oil receipts faced a decline due to production challenges and softening global prices.