Central Bank of Nigeria disburses $1.26bn to oil marketers in early 2025 for fuel imports despite rising supply from Dangote Refinery

Central Bank of Nigeria data show that the apex bank released a total of $1.259bn to oil sector players between January and March 2025 for the importation of petroleum products, even as the Dangote Refinery ramped up local production.

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Figures obtained from the Central Bank’s quarterly statistical bulletin indicate that $457.83m was disbursed in January, $283.54m in February, and $517.55m in March.

The allocations supported fuel import transactions at a time when Nigeria’s foreign exchange market remained under pressure.

The disbursements came despite growing calls for marketers to prioritise domestic supply from the 650,000-barrel-per-day Dangote Petroleum Refinery.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that marketers imported 69 per cent of the 21 billion litres of petrol consumed between August 2024 and early October 2025.

During the first quarter of 2025, a total of 2.28 billion litres of petrol entered the country, with monthly imports rising from 724.5 million litres in January to 803.7 million litres in March.

The figure represents one of the lowest quarterly import levels in recent years, reflecting a gradual shift toward local refining.

Analysts say the fuel import bill continues to exert pressure on Nigeria’s foreign reserves and the naira, as fuel imports remain a major consumer of hard currency.

The Central Bank of Nigeria has defended the forex releases as essential for ensuring steady supply and price stability in the downstream sector.

However, the move has reignited debate over the competitiveness of locally refined petrol compared with imported products.

The National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, told The PUNCH that price remains the sole driver for marketers’ sourcing decisions.

“In this business, pricing is everything,” he said. “Marketers will always go for the most affordable option because our margins are very thin. If imported products are cheaper, we’ll patronise importers, but if Dangote offers a better price, we’ll buy locally.”

Ukadike added that the price gap between domestic and imported products fluctuates with global crude prices, exchange rates, and policy decisions.

Meanwhile, the latest Energy Bulletin from the Major Energies Marketers Association of Nigeria shows that the estimated import parity price of Premium Motor Spirit has dropped to ₦805.46 per litre, driven by lower global oil prices and exchange rate adjustments.

Also read: Dangote Cement launches Attingué plant in Ivory Coast

With Dangote Refinery still exporting to international markets while vying for local dominance, Nigeria’s downstream sector appears set for continued competition — and scrutiny — over pricing, forex allocation, and supply strategy.