- Nigeria imported crude oil worth N5.734 trillion in 2025 despite high production levels
- The country recorded zero crude imports in 2024, marking a sharp year-on-year increase
- The naira-for-crude policy has not significantly improved supply or reduced fuel prices
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria spent about N5.734 trillion on crude oil imports in 2025 despite being Africa’s largest oil producer, as domestic refineries struggled with persistent shortages of feedstock.
The development comes despite the federal government’s naira-for-crude policy aimed at prioritising local supply to refineries.
Source: Getty Images
As reported by PUNCH, data from the National Bureau of Statistics (NBS) shows that while the country produced 530.41 million barrels of crude and generated roughly N55.5 trillion from sales in 2025, domestic refiners still turned to imports, highlighting a disconnect between production and local supply.
Crude imports surge after zero record in 2024
According to the NBS Foreign Trade in Goods Statistics report, Nigeria recorded no crude oil imports in 2024, but this changed significantly in 2025, marking a 100% year-on-year increase.
Crude oil imports, classified under petroleum oils, emerged as a major import category during the year, driven largely by supply shortages to local refineries.
In the first quarter, imports stood at N1.19 trillion. This rose by 37.8% to N1.64 trillion in the second quarter and climbed further by 46.5% to N2.403 trillion in the third quarter.
However, imports dropped sharply by 79.2% to N499.75 billion in the fourth quarter, suggesting some easing in demand or improved local supply towards year-end.
Monthly data shows volatile supply pattern
A closer look at the monthly figures reflects unstable supply conditions throughout the year.
Imports rose from N335.69 billion in January to N445.27 billion in February before dipping slightly in March. After a moderate decline in April, the figure surged by 116% in May, indicating heightened supply constraints.
The trend continued with fluctuations, peaking at N1.28 trillion in July, the highest monthly import figure recorded in 2025. Imports declined steadily afterward, dropping to zero by December.
Overall, the data show that refineries adjusted their sourcing strategies frequently due to inconsistent domestic crude availability.
Refineries rely on imports amid local supply challenges
Industry findings indicate that both modular and large-scale refineries, including the Dangote Petroleum Refinery, are increasingly sourcing crude from international markets.
The Crude Oil Refinery Owners Association of Nigeria (CORAN) attributed this trend to structural and commercial challenges within the domestic supply chain.
CORAN’s spokesperson, Eche Idoko, said local refiners have received little to no crude allocations under the Domestic Crude Oil Supply Obligation (DCSO) framework or the naira-for-crude arrangement.
He explained that some modular refineries operate far below capacity or shut down entirely due to lack of feedstock, noting that facilities designed to process 10,000 barrels per day sometimes produce as little as 1,000 barrels or suspend operations for months.
Dangote refinery cites supply shortfall
The Dangote Petroleum Refinery also confirmed it receives about five cargoes of crude monthly from the Nigerian National Petroleum Company (NNPC) under the naira-for-crude deal.
However, the refinery said it requires approximately 13 cargoes monthly to meet demand, leaving a shortfall that is covered through imports.
The company added that crude supplied locally is priced at international rates, forcing it to source additional volumes from global markets using foreign exchange.
Structural constraints limit domestic supply
A Professor of Energy, Dayo Ayoade, pointed to deeper structural issues affecting crude availability.
He explained that past forward sales of crude to secure government loans, underinvestment in upstream operations, and competing export commitments have reduced the volume available for domestic refining.
Ayoade also noted that modern refineries require a mix of crude grades, meaning some level of importation is inevitable.
He warned that crude imports are likely to persist into 2026 due to ongoing challenges such as oil theft, pipeline vandalism, and logistics constraints.
Source: Twitter
Nigeria sources crude from global markets
The NBS data shows that Nigeria imported crude mainly from African countries such as Algeria and Angola, with the United States accounting for the largest share.
Analysts say this reflects a broader trend where refiners prioritise reliability and quality over proximity in sourcing crude.
Despite recent investments in refining capacity, including large-scale projects, Nigeria continues to face difficulties aligning crude production with domestic refining demand.
Although the Petroleum Industry Act introduced provisions to ensure local supply, implementation challenges and existing contractual obligations have limited progress.
NNPC moves to secure crude supply for Dangote Refinery
Legit.ng earlier reported that the NNPCL has announced plans to source crude oil for the Dangote refinery through international traders to sustain refining operations.
Nigerians are lamenting the rise in petrol prices, with pump prices in some locations reaching about N1,200 per litre.
Nigeria’s crude imports from the United States increased significantly in 2025 as domestic supply remains insufficient.
Source: Legit.ng