Nigeria, Africa’s largest crude oil producer, spent ₦1.19 trillion importing crude oil in the first quarter of 2025 due to insufficient local supply to domestic refineries, a new report by the National Bureau of Statistics (NBS) has revealed.
The imported crude, listed as “Petroleum oils and oils obtained from bituminous minerals, crude,” was Nigeria’s third-highest import in Q1, trailing behind gas oil and petrol, which cost ₦1.83 trillion and ₦1.76 trillion respectively.
According to the NBS, “China remains Nigeria’s highest trading partner on the import side in the first quarter of 2025, followed by India, the United States of America, the Netherlands, and the United Arab Emirates.
“The most traded commodities imported during the quarter were Gas oil, Motor spirit ordinary, Petroleum oils and oils obtained from bituminous minerals, crude, Cane sugar meant for sugar refinery, and Durum wheat (Not in seeds).”
Data from the bureau shows that the United States was Nigeria’s primary source of imported crude, contributing ₦726.84 billion, or about 61 per cent of the total. Angola followed with ₦223.58 billion and Algeria with ₦122.37 billion.
This trend, analysts say, highlights the inability of Nigeria’s domestic crude supply to meet the needs of both large and modular refineries like the Dangote Refinery. As a result, local processors have turned to the international market for reliable and cost-effective crude.
Despite producing over 1.4 million barrels of crude per day, refinery owners say local supply remains virtually non-existent.
Eche Idoko, Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria (CORAN), confirmed the supply shortfall.
“Local refiners, especially the modular refineries, have not been getting crude, I mean zero allocation, under the DCSO or any other special arrangement,” he said.
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Idoko added that many refinery operators have resorted to importing crude oil themselves in order to remain in business.
“We have resorted to private arrangements to source products. This process has been herculean, forcing most of the modular refineries to produce below full capacity.
“So, we consider the directive by the NUPRC quite heartwarming, and we hope the IOCs will be cooperative. And none of the modules have benefited from the Naira for crude either,” he said.
He further praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for attempting to ease licensing costs, but noted that refined fuel importers seem to be receiving more government incentives than local refinery investors.
“We are appealing to Mr President and the government’s economic team to please give attention to local refineries, especially modular refineries,” he added.
To address the shortage, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently banned the export of crude designated for domestic refining.
Gbenga Komolafe, Chief Executive of the NUPRC, stated, “Diverting crude oil meant for local refineries is a violation of the law.” He warned that export permits would no longer be issued for such crude allocations.
Despite the domestic need, oil producers have continued to prioritise exports.
The Petroleum Products Retail Outlets Owners Association of Nigeria recently alleged that 500,000 barrels of crude earmarked for local refining were being diverted abroad in pursuit of foreign exchange.