According to current statistics from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), marketers have recommenced large-scale imports of refined petroleum products, bypassing domestic refining possibilities, most notably the $20 billion Dangote Petroleum Refinery in Lekki.
Marketers in Nigeria have resumed large-scale imports of refined petroleum products due to domestic refining limitations, including underutilization of the Dangote Petroleum Refinery.
In May and June 2025, imports constituted 71.38% of the nation’s petrol consumption, compared to 28.62% sourced from local production.
This import preference occurs amid a severe foreign exchange crisis and undermines the economic rationale for local refinery development.
According to fuel supply estimates given to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of the country’s daily petrol consumption in May and June. Only 28.62% of the fuel consumed during this period came from Dangote’s well-known plant.
This significant preference for imports occurs at a time when Nigeria is experiencing a severe foreign exchange crisis.
Marketers, who were meant to lessen the country’s reliance on imports by supporting domestic refining, are instead spending precious FX to find refined goods overseas.
This contradicts one of the primary economic reasons for establishing local refineries: to preserve currency and improve energy security.
Prior to this report becoming public, Aliko Dangote, Africa’s richest man and head of the Dangote Group, had urged the federal government late in July to ban the import of petrol, diesel, and other refined petroleum products.
According to Dangote, unrestricted fuel dumping undermines local initiatives.
He said that imports are flooding the market with poor and lower-cost fuel, making it harder for local manufacturers to compete.
This, he claims, is putting a financial squeeze on domestic refineries constructed to global standards and operating under tougher quality and cost constraints.
“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” the Nigerian billionaire stated.
“And to make matters worse, we are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America,” he added.
The strain between the $20 billion refinery and marketers is not only policy-related; it is also manifesting at the pump.