By John Umeh
Business News Correspondent
The Central Bank of Nigeria (CBN) has disbursed a total of $1.25 billion to oil sector operators for the importation of petroleum products and other related commodities between January and March 2025, as part of ongoing efforts to stabilize fuel supply in the country.
According to newly released data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the funds were used to support importers despite the growing availability of locally refined petrol from the Dangote Petroleum Refinery.
The CBN’s intervention comes at a time when the nation’s downstream oil sector is witnessing intense competition between fuel importers and the Dangote Refinery over pricing, market share, and supply dominance.
Breakdown of CBN’s Disbursement
A detailed analysis of the CBN’s first-quarter 2025 statistical bulletin shows that:
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$457.83 million was released in January (36.2%),
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$283.54 million in February (22.5%), and
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$517.55 million in March (41.3%) — the highest for the quarter.
These disbursements were directed primarily toward fuel importation, with total imports reaching 2.28 billion litres during the first quarter of the year. The figure marks one of the lowest quarterly import volumes in recent years, reflecting Nigeria’s gradual shift toward local refining and blending.
Fuel Imports Still Dominate Supply
Despite the Dangote Refinery’s operational ramp-up, petroleum marketers reportedly imported 69% of the 21 billion litres of petrol consumed nationwide between August 2024 and October 2025, according to NMDPRA records.
This continued dependence on imported products underscores the challenges facing the transition to domestic refining, including pricing disparities and foreign exchange volatility.
Marketers Prioritize Cost Over Source
Speaking on the development, Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the choice between imported and locally refined fuel depends entirely on cost competitiveness.
“In this business, pricing is everything. Marketers will buy from whichever source offers the lowest price. Our margins are very thin, so we can’t afford to operate based on sentiment,” Ukadike explained.
He further noted that the price gap between imported and locally refined petrol fluctuates in response to global oil prices, exchange rate movements, and domestic policies.
Market Competition Intensifies
Analysts say the competition between the Dangote Refinery—Africa’s largest with a refining capacity of 650,000 barrels per day—and fuel importers has intensified in recent months. While Dangote has been supplying the local market, it has also begun exporting petrol to foreign markets, including the United States, positioning itself as a global player.
However, despite Dangote’s growing presence, many marketers continue to import fuel due to perceived cost advantages, especially when global oil prices decline or the naira strengthens temporarily.
Impact on the Economy
Fuel importation remains one of the largest consumers of Nigeria’s foreign exchange, exerting significant pressure on the nation’s reserves and the naira-to-dollar exchange rate.
Economists believe that CBN’s $1.25 billion intervention underscores the ongoing fiscal challenge of balancing fuel supply stability with the goal of preserving scarce forex reserves.
Meanwhile, the Major Energies Marketers Association of Nigeria (MEMAN) has reported a further reduction in the import parity price of petrol, driven by sustained fluctuations in global oil prices and foreign exchange rates—a trend likely to influence market pricing decisions in the coming months.
As Nigeria continues its transition toward energy self-sufficiency, stakeholders say the balance between local refining capacity and import dependency will define the trajectory of the country’s fuel market in 2026 and beyond.
