ABUJA, Nigeria (FN) — The Central Bank of Nigeria has released 1.259 billion Dollars to petroleum sector operators for the importation of fuel and related commodities during the first quarter of 2025, despite rising domestic output from the Dangote Refinery. The move has sparked debate over Nigeria’s energy priorities and foreign exchange strategy.
The CBN’s quarterly bulletin showed 457.83 million Dollars was disbursed in January, 283.54 million Dollars in February, and 517.55 million Dollars in March. The March figure represented the highest allocation, suggesting a surge in import activity toward the end of the quarter.
This financial injection coincides with continued fuel imports, even as the Dangote Refinery — Africa’s largest — expands its production footprint. The refinery, with a 650,000-barrel-per-day capacity, has begun exporting petrol to international markets.
Regulatory data indicates that 69% of the 21 billion litres of petrol consumed between August 2024 and early October 2025 were imported. Between January and March alone, 2.28 billion litres entered the country through foreign suppliers.
The volume marks a decline compared to previous years, but critics argue the pace of transition to domestic refining remains sluggish. The rivalry between Dangote’s facility and import-dependent marketers has intensified, with pricing emerging as the decisive factor.
Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria defended the import strategy, saying cost remains the industry’s compass. He emphasized that decisions are driven by global oil benchmarks, currency volatility, and regulatory shifts.
In response to criticism, the Ministry of Petroleum Resources stated that fuel imports remain necessary to “ensure supply stability” during the transition to full domestic refining. A spokesperson added, “The government is committed to supporting local production, but we must avoid disruptions in the market while refining capacity scales up.”
The Central Bank also defended its forex allocations, saying the disbursements were made to “maintain energy security and prevent supply shocks.” Officials noted that the bank continues to work with stakeholders to reduce long-term dependence on imports.
Supporters of the Dangote Refinery contend that its operations have already saved Nigeria billions in potential import costs and could generate substantial export revenue if fully integrated into the domestic supply chain.
Meanwhile, industry reports show a further drop in the import parity price of Premium Motor Spirit, now pegged at 805.46 Naira per litre. The decline reflects sustained pressure from global market forces and exchange rate instability. As Nigeria navigates its energy future, the CBN’s continued forex support for fuel imports reveals the complex interplay between policy, market forces, and infrastructure.
