Nigeria Slashes Petrol Import Bill by 54% as Dangote Refinery Transforms Energy Landscape
In a dramatic shift that signals Nigeria’s march toward energy independence, the country’s petrol import bill has crashed by 54% in the first quarter of 2025, dropping from N3.81 trillion to N1.76 trillion year-on-year. This stunning decline represents the most significant reduction in petroleum imports in recent history, largely attributed to the ramped-up operations of the Dangote Refinery.
The 650,000 barrels-per-day facility, currently operating at 85% capacity, has fundamentally disrupted Nigeria’s decades-long dependence on imported refined products. A five-year analysis reveals that petrol imports had been on a relentless upward trajectory since 2020, peaking at N3.81 trillion in Q1 2024 before this historic reversal.
The transformation has introduced fierce competition in the downstream market, with retail prices in Lagos plummeting to as low as N860 per litre in early 2025. However, the refinery has faced operational challenges, including a temporary halt in local currency sales due to foreign exchange constraints in March 2025.
Despite these hurdles, the facility continues to supply a significant portion of Nigeria’s petrol demand, marking a structural shift away from the country’s traditional import-dependent model that emerged after the collapse of state-owned refineries.
Source: nairametrics.com
