Nigeria Cuts Fuel Imports, As Refining Surges by 57% in Three Months
Atume Terfa
Nigeria’s decades-long reliance on imported petrol is steadily loosening, as a sharp rise in domestic refining begins to reshape the country’s energy landscape. In just three months, local refining output has surged by 57 per cent — a shift that is already cutting deep into fuel import volumes.
At the centre of this transformation is the Dangote Petroleum Refinery, Africa’s largest single-train refinery, which continues to scale up production for the domestic market. Since commencing large-scale supply, the facility has significantly boosted the volume of Premium Motor Spirit (PMS) available within Nigeria.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, locally refined petrol now accounts for more than half of national consumption — a milestone for a country that for years depended heavily on overseas suppliers to keep its filling stations running.
Production figures underline the momentum. In January 2026, the Dangote refinery supplied an average of 40.1 million litres of PMS daily, up from about 32 million litres in December 2025. That represents a 25 per cent month-on-month rise and forms part of the broader three-month growth that has driven the 57 per cent surge in domestic refining capacity.
The impact has been immediate. Fuel import volumes have declined markedly as more of Nigeria’s demand is met at home. The reduction is helping to ease pressure on foreign exchange reserves and trimming the nation’s fuel import bill, long one of the heaviest burdens on public finances.
Industry analysts attribute the shift to a mix of policy direction and market forces. Government measures prioritising locally refined products before issuing import licences have strengthened domestic players, while a firmer naira and softer international Ship-to-Ship (STS) petrol prices have narrowed the incentive to import.
Although Nigeria still brings in some refined products to bridge supply gaps, the direction is unmistakable. The steady expansion of local refining marks a structural turning point for Africa’s largest oil producer — moving it closer to energy self-sufficiency and potentially saving billions of dollars in foreign exchange each year.
If current momentum holds, industry watchers say Nigeria may soon complete a journey long considered elusive: significantly reducing, or even ending, its dependence on imported petrol.
