Nigeria’s foreign exchange demand for oil-sector imports surged by 114.91 per cent in 2025, highlighting the country’s continued reliance on imported petroleum products and related inputs despite the expansion of domestic refining capacity.
The development was disclosed in the Central Bank of Nigeria’s 2025 Annual Report and Statement of Accounts, which showed that foreign exchange utilised for oil-sector imports rose to $4.86 billion, from about $2.26 billion in 2024.
The report indicated that petroleum-related imports remained the second-largest consumer of foreign exchange among visible imports, accounting for 25.91 per cent of total import-related FX utilisation during the year.
The increase comes despite the commencement and expansion of domestic refining operations, including the 700,000-barrel-per-day Dangote Petroleum Refinery, which has continued to ramp up production.
Oil sector remains major FX consumer
According to the CBN, aggregate foreign exchange utilisation across the economy increased significantly in 2025, driven largely by higher demand for invisible imports and increased import-related transactions.
The apex bank stated, “Aggregate utilisation of foreign exchange by economic sectors rose, driven by higher invisible imports. Foreign exchange utilisation increased by 59.36 per cent to $42.83bn, from $26.88bn in 2024.”
The report showed that visible imports accounted for $18.76 billion, representing 43.80 per cent of total foreign exchange utilised during the year, compared with $15.62 billion in 2024.
The CBN said industrial imports remained the largest consumer of foreign exchange among visible imports, followed by oil-sector imports.
It stated, “Of the foreign exchange utilised in total visible imports, industrial sector imports were dominant at 42.11 per cent.
“This was followed by the oil sector (25.91 per cent), manufactured products (15.64 per cent), food products (10.51 per cent), transport sector (3.78 per cent), mineral sector (1.04 per cent), and agricultural sector (1.00 per cent).”
Providing a further breakdown, the apex bank said petroleum imports recorded the sharpest increase among the major import categories.
According to the report, “A further analysis showed that the amount utilised for oil sector import rose by 114.91 per cent to $4.86bn.”
The CBN added that foreign exchange utilisation for manufactured products rose by 61.70 per cent to $2.93 billion, while the transport sector increased by 52.17 per cent to $710 million and the agricultural sector by 20.71 per cent to $190 million.
However, the apex bank noted that FX utilisation declined in some major sectors.
It stated that utilisation for the industrial sector decreased by 0.76 per cent to $7.90 billion, while food products and minerals fell by 22.01 per cent and 54.85 per cent to $1.97 billion and $190 million, respectively.
Invisible transactions dominate FX demand
The CBN report also revealed that foreign exchange utilisation for invisible transactions exceeded that of visible imports in 2025.
According to the apex bank, “Foreign exchange utilisation for invisible transactions at $24.07bn or 56.20 per cent of the total, increased by 113.83 per cent, compared with $11.26bn in 2024.”
The bank said financial services accounted for the largest share of invisible transactions.
It stated, “The amount utilised for financial and transport services rose by 125.25 and 41.46 per cent to $22.18bn and $0.57bn, respectively.”
The CBN added that tourism and travel-related services accounted for $3.72 billion, business services $1.15 billion, while health-related and social services accounted for $30 million.
Meanwhile, utilisation for communication services declined by 62.82 per cent to $700 million, education fell by 18.39 per cent to $530 million, while other services dropped by 40.23 per cent to $10 million.
On the composition of invisible imports, the apex bank said financial services constituted 92.12 per cent of the total invisible imports, followed by business services at 4.77 per cent, transport services at 2.39 per cent, communication services at 0.29 per cent and educational services at 0.22 per cent.
Petrol imports still dominated in 2025
The sharp increase in oil-sector FX utilisation occurred at a time Nigeria was expanding its domestic refining capacity.
According to the factsheet on the state of the midstream and downstream petroleum sector, petrol imports remained the dominant source of fuel consumed in Nigeria in 2025, accounting for 62.47 per cent of total Premium Motor Spirit consumption.
Total national petrol consumption stood at approximately 18.97 billion litres in 2025.
Oil marketing companies accounted for 11.85 billion litres through imports, while domestic refineries supplied about 7.54 billion litres, representing 37.53 per cent of total consumption.
The figures meant that nearly two-thirds of the petrol consumed by Nigerians in 2025 was sourced from foreign markets.
Dangote refinery changes supply dynamics in 2026
The situation, however, has changed considerably in the first six months of 2026, with the Dangote Petroleum Refinery maintaining its position as Nigeria’s dominant supplier of Premium Motor Spirit.
Petrol importation fell by 65.7 per cent during the first half of 2026, indicating a significant shift towards domestic supply.
The Federal Government has repeatedly argued that increased domestic refining would reduce Nigeria’s dependence on imported petroleum products, conserve scarce foreign exchange, strengthen energy security and improve the country’s balance of payments.
However, pricing remains a major factor influencing the decisions of petroleum marketers.
Marketers prioritise price over source
Growing competition between domestic refiners and fuel importers has made price one of the most important considerations for operators in the downstream sector.
The National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers would naturally purchase from whichever supplier offers the most competitive price.
Ukadike explained, “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.”
The IPMAN spokesman added that the price difference between locally refined products and imports fluctuates depending on global crude oil prices, exchange rates and government policies.
“No marketer can afford sentiment when it comes to survival,” Ukadike said. “Our decision is driven by economics, not emotion.”
Oil imports go beyond petrol
Industry operators have also pointed out that petroleum import bills are not limited to Premium Motor Spirit.
They include crude oil swaps, refined petroleum products, lubricants, petrochemical feedstocks, refinery equipment, catalysts, additives and other inputs required across the downstream petroleum value chain.
The development is also reflected in the volume of crude imported by domestic refiners.
Dangote reportedly imported crude oil worth N5.73 trillion in 2025, comprising N1.19 trillion in the first quarter, N1.64 trillion in the second quarter, N2.40 trillion in the third quarter and N499.75 billion in the fourth quarter.
What the figures mean for Nigeria
The latest CBN figures come amid sweeping reforms in Nigeria’s downstream petroleum sector following the deregulation of the petrol market, declining fuel imports and increased competition between domestic refiners and independent importers.
While the expansion of domestic refining represents a major shift in Nigeria’s energy landscape, the 2025 data shows that the country’s dependence on foreign exchange for oil-sector imports remained significant.
The decline in petrol imports recorded in the first half of 2026 suggests that domestic refining is beginning to change the supply structure.
However, the broader oil-sector import bill indicates that achieving substantial and sustained savings in foreign exchange will require more than increasing petrol production.
It will also depend on the availability of locally sourced crude, competitive domestic pricing, efficient refining operations, adequate infrastructure and reduced dependence on imported petroleum-related inputs.
For Nigeria, the challenge is therefore no longer simply whether the country can refine crude locally, but whether the growth of domestic refining can translate into lasting FX savings, lower petroleum costs and greater energy security.
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