PETROL IMPORTS HIT N952BN AS DANGOTE REFINERY FACES FRESH IMPORTERS’ DISPUTE

Nigeria spent N952.15bn on imported Premium Motor Spirit, commonly known as petrol, in the second quarter of 2026, despite the increasing contribution of domestic refineries to the country’s fuel supply. The figure represents 6.6 per cent of Nigeria’s total import bill of N14.42tn during the period and comes amid an ongoing disagreement between the Dangote Petroleum Refinery and petroleum importers over the continued entry of foreign-refined petrol into the country.

Although the latest figure represents a substantial increase from the N87.40bn recorded in the first quarter of the year, petrol imports were still significantly lower than the corresponding period in 2025. Nigeria imported N2.83tn worth of PMS in the second quarter of 2025, meaning the latest figure reflects a year-on-year reduction of about N1.88tn, or 66.4 per cent. The decline suggests that local refining is gradually reducing Nigeria’s dependence on imported petrol, even though imports remain substantial.

The renewed importation has become a major point of contention in the downstream petroleum market, particularly as the Dangote Refinery continues to increase its refining operations. The refinery has maintained that Nigeria should prioritise locally refined petroleum products, while petroleum marketers and importers have continued to participate in the market, creating tension over supply, pricing and competition.

The development highlights the changing structure of Nigeria’s petroleum industry following the expansion of domestic refining capacity. While local production has reduced the country’s reliance on foreign petrol compared with the previous year, the second-quarter rebound shows that imported fuel remains part of the supply chain. Market participants are therefore watching closely to see how the competition between domestic refiners and importers affects petrol availability and prices.

The latest figures also underline the financial significance of Nigeria’s transition from a heavily import-dependent fuel market to one increasingly supported by domestic refining. With nearly N1tn still spent on petrol imports in just three months, the government and industry stakeholders face continued pressure to ensure that local refining capacity is fully utilised while maintaining adequate supply and healthy competition in the downstream sector.