December 12, (THEWILL) — Nigeria’s escalating fuel import costs reached ₦1.28 trillion in the third quarter of 2025, data from the National Bureau of Statistics (NBS) shows, underscoring the country’s ongoing dependence on imported petroleum products despite rising local refining activities.
The figure highlights the significant financial burden of premium motor spirit (PMS) and other petroleum imports on Nigeria’s economy, even as efforts to boost domestic refining capacity continue.
Fuel import costs remain a major driver of import expenditure within the broader merchandise trade landscape, which grew to ₦38.9 trillion in the same period.
Analysts say the high import bill reflects structural challenges in the downstream petroleum sector, including incomplete local refining output and persistent demand pressures that local facilities have yet to fully meet.
Prices for imported fuel are heavily influenced by global crude oil markets and exchange rate dynamics, factors that can inflate local-currency denominated costs.
While the Dangote Refinery and other domestic facilities have begun contributing to local supply and cutting some import volumes, a reliance on foreign-refined products persists, particularly for PMS.
Industry observers note that although domestic production has helped reduce imports compared with earlier quarters, it has not yet eliminated the need for foreign purchases.
The substantial outlay on fuel imports also has implications for foreign exchange reserves and the trade balance, as a significant share of import spending continues to be directed toward energy products.
Decisions by policymakers on tariffs, refining incentives, and import licensing could influence future trends in import bills and domestic fuel pricing.
Economists argue that sustained investment in refining infrastructure, improved supply chain logistics, and targeted fiscal measures are crucial to reducing the nation’s exposure to volatile global fuel prices and shrinking the import bill over the medium to long term.
Ogochukwu Onwaeze
