The amount spent on the importation of refined petroleum products fell dramatically by 54% in just two years, from $14.58 billion in the first nine months of 2023 to $6.71 billion in the same period of 2025, according to data from the Central Bank of Nigeria’s Balance of Payments report.
It declined from $14.58bn in the first nine months of 2023 to $11.38bn in the corresponding period of 2024, before dropping further to $6.71bn within nine months of 2025.
This is according to a comparative analysis of the 2023 and 2024 full-year and the Q3 2025 Balance of Payments presentation, released by the CBN and reviewed by The PUNCH on Monday.
The figures obtained from the CBN documents showed a sustained moderation in fuel importation, with import bills declining year-on-year over the period under review.
The data revealed that Nigeria spent $11.38bn on refined petroleum product imports between January and September 2024, representing a $3.20bn or 21.9 per cent decline compared with $14.58bn recorded in the same period of 2023, pointing to a sharp contraction in foreign exchange outflows associated with refined petroleum products.
The downward trend accelerated in 2025, with fuel imports dropping further by $4.67bn, or 41 per cent, to $6.71bn within the first nine months of the year, marking the steepest year-on-year contraction in the period analysed.
Overall, the figures show that Nigeria spent $7.87bn less on refined fuel imports in the first nine months of 2025 than it did in the corresponding period of 2023, underscoring a significant easing of foreign exchange outflows linked to petroleum product imports.
The CBN data also showed a 41 per cent year-on-year decline in refined petroleum product imports by the third quarter of 2025, signalling early signs of import substitution as new and rehabilitated refineries scale up operations.
The PUNCH reports that Nigeria’s reduced foreign exchange spending on imports comes against the backdrop of a series of structural reforms and market adjustments aimed at easing pressure on the country’s external reserves and stabilising the naira.
For decades, Nigeria relied heavily on imports, particularly refined petroleum products, due to limited domestic productive capacity, weak industrial output, and chronic underinvestment in critical infrastructure. This dependence made import financing one of the largest drains on foreign exchange earnings.
The removal of petrol subsidies in 2023 marked a major turning point, as higher pump prices curbed fuel consumption and reduced arbitrage-driven demand. The policy shift, combined with stricter foreign exchange management by the Central Bank of Nigeria, helped moderate import volumes and limit speculative FX demand linked to fuel importation.
Another key factor has been the gradual expansion of domestic supply, especially in the downstream oil sector. Energy experts also say competition within the market has intensified as marketers struggle to compete with supply from the $20bn Dangote Petroleum Refinery in Lekki.
Despite the decline, Nigerian fuel-importing marketers still spent an estimated $6.71bn importing refined products during the review period, underscoring the country’s continued dependence on foreign fuel supplies, despite repeated assurances that domestic refining would significantly curb imports.
Although the quarterly fuel import bill declined consistently, the data highlighted persistent structural weaknesses in the downstream oil sector.
