Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows a sharp rise in fuel imports, with 71.38% of petrol consumed in May and June 2025 sourced from abroad.

Only 28.62% came from local refineries—chiefly the Dangote Petroleum Refinery.

Marketers reject Dangote’s call for fuel import ban Out of 3.25 billion litres of petrol used in the two months, 2.32 billion litres were imported.

Despite functional local refineries like Dangote’s $20 billion plant, Nigeria relied on imports for 71% of its petrol in May and June 2025, spending a whopping ₦2.1 trillion on foreign fuel.

With pump prices averaging ₦905 per litre, marketers spent approximately ₦2.1 trillion on petrol imports within 60 days.

Amid rising imports, Aliko Dangote urged the federal government to enforce its “Nigeria First” policy by banning refined petroleum imports.

He warned that continued importation discourages domestic refining and kills investor confidence.

However, oil marketers, industry experts, and legal scholars rejected this call. They argue such a ban could promote monopolistic practices and stifle competition.

Chinedu Ukadike of IPMAN said, “We fear monopoly. If Dangote wants to dominate, let him do so through cheaper pricing—not legislation.”

Why importation remains attractive to marketers

According to industry analyst Jeremiah Olatide, petrol importers currently offer better prices than Dangote’s ex-depot rates, a Punch report said.

“Over 80% of depots in Lagos sold petrol cheaper than Dangote in July,” he said.

This price disparity is why many marketers continue to opt for foreign-sourced petrol, despite the operational status of local refineries.

He noted that importers are strategically increasing volumes in anticipation of Dangote’s August 15 full rollout, expecting potential supply constraints or pricing shifts.

State-by-State fuel demand: Lagos leads the pack

The NMDPRA report showed Lagos State consumed the most petrol, accounting for 205.66 million litres, followed by Ogun (88.69 million litres) and the FCT (77.5 million litres).

Other high-demand states include Oyo, Delta, and Kano, while states like Jigawa and Yobe recorded the lowest distribution volumes.

The trend confirms that southwestern and north-central states—with higher population densities and economic activity—consume the most fuel.

Other fuels also depend heavily on imports

It’s not just petrol. Aviation Turbine Kerosene (ATK), Household Kerosene (HHK), diesel, and even Liquefied Petroleum Gas (LPG) were all predominantly imported.

LPG had zero local production, and diesel imports jumped from 7.3 million litres daily in May to 8.7 million litres in June.

Experts warn against monopolies, urge market diversity

Professor Dayo Ayoade of the University of Lagos warned that banning imports would grant dangerous monopoly power to a single player.

He emphasised the need for a diverse refining base and adherence to international trade laws before considering restrictions.

Billy Gillis-Harry of PETROAN echoed similar concerns, noting that Nigeria needs multiple energy sources and suppliers to ensure price stability and market resilience. “Importation isn’t killing the market—it’s keeping it alive,” he added.

What to expect

Despite local refining capacity, marketers are returning to imports due to cheaper prices.

The Dangote refinery’s call for a fuel import ban is facing stiff resistance from industry players wary of a monopoly.

With ₦2.1tn spent on imports in two months, Nigeria’s dependence on foreign petroleum remains deeply entrenched.