Nigeria’s petrol import bill has plunged from about N2.3 trillion to less than N90 billion within one year as domestic refining capacity continues to expand, according to the Federal Government.
The Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, disclosed the development during the Nigerian-British Chamber of Commerce Energy Day 2026 held in Lagos, saying the country is witnessing its most significant shift away from fuel import dependence in decades.
Verheijen said local petrol production has risen from virtually zero in 2023 to approximately 48 million litres per day, adding that, for the first time in a generation, most of the petrol consumed by Nigerians is now refined within the country.
According to her, the sharp reduction in imports is helping to reduce pressure on foreign exchange demand and strengthen the naira.
“For decades, every cargo of imported petrol was a standing demand for scarce dollars, a structural drain that weakened our currency,” she said.
“As local refining has risen, that drain has eased. Petrol imports fell from about N2.3 trillion in the first quarter of 2025 to under N90 billion a year later.”
Recent official data show petrol imports dropped to about N87.4 billion in the first quarter of 2026 from N2.27 trillion during the same period in 2025, representing a decline of more than 96 per cent.
The dramatic decline has been largely attributed to increased output from domestic refineries, particularly the growing contribution of the Dangote Refinery and the gradual return of state-owned refining assets.
Verheijen also highlighted improvements in crude oil production and investor confidence, noting that crude oil and condensate output averaged 1.64 million barrels per day in 2025.
She said production has increased by roughly 400,000 barrels per day since 2023, describing it as the highest onshore production level recorded in two decades.
The presidential adviser disclosed that more than $4 billion worth of international oil company divestments had been successfully concluded, leading to stronger indigenous participation in onshore operations while major multinational firms concentrate on deep-water projects and gas development.
She added that pipeline uptime has improved significantly and illegal refining activities have reduced, helping to stabilize production and improve government revenues.
Reflecting on the state of the sector inherited by the Tinubu administration in 2023, Verheijen said fuel subsidies had become fiscally unsustainable while foreign exchange distortions discouraged investment.
She argued that the administration’s decision to remove petrol subsidies and unify exchange rates restored fiscal credibility despite the initial economic pain experienced by many Nigerians.
According to her, total federation revenue rose from about N12 trillion in 2023 to approximately N21 trillion in 2024, nearly doubling within a year.
The government’s claims come amid continued public debate over the impact of subsidy removal and rising living costs. While officials point to stronger revenues, increased domestic refining and improved energy security as evidence that reforms are working, many Nigerians continue to grapple with inflation and elevated fuel prices.
Analysts say the sustainability of current gains will depend on maintaining refinery output, boosting crude production and ensuring that the benefits of reforms translate into broader economic relief for households and businesses.
