Nigeria recorded a dramatic decline in petrol imports during the first quarter of 2026, with the value of Premium Motor Spirit (PMS) imports falling by approximately N2.18 trillion compared to the same period in 2025. The development reflects a major shift in the country’s fuel supply structure, driven largely by increased domestic refining capacity, as reported by Nairametrics
According to trade and industry data, Nigeria’s petrol import bill dropped to about N87.4 billion in Q1 2026 from roughly N2.27 trillion recorded in Q1 2025, representing a decline of more than 96 percent. The sharp reduction underscores the growing impact of local refineries on the nation’s energy landscape.
The decline has been linked primarily to rising domestic fuel production, particularly from the 650,000-barrel-per-day Dangote Refinery and other local refining facilities. Increased local output has significantly reduced Nigeria’s dependence on imported petrol, a product that previously ranked among the country’s largest import expenditures.
Data also showed that petrol accounted for only 0.64 percent of Nigeria’s total imports in Q1 2026, a steep drop from 13.64 percent during the corresponding period of 2025. In addition, PMS fell out of the country’s top ten imported products for the first time in recent years.
Industry figures indicate that petrol import volumes declined to about 965.5 million litres in the first quarter of 2026, compared with an estimated 2.43 billion litres imported during the same period last year. At the same time, local refinery supply rose to approximately 3.18 billion litres, helping to meet domestic demand and reduce pressure on foreign exchange reserves.
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The reduction in petrol imports also contributed to an improvement in Nigeria’s external trade position. Official trade statistics show that the country posted a trade surplus of N7.55 trillion in the first quarter of 2026 as exports increased while imports declined.
What You Need to Know
- Nigeria’s petrol import bill fell from about N2.27 trillion in Q1 2025 to N87.4 billion in Q1 2026.
- The decline represents a reduction of approximately N2.18 trillion and more than 96 percent year-on-year.
- Petrol imports dropped to 965.5 million litres, while local refinery supply increased to 3.18 billion litres.
- PMS accounted for just 0.64 percent of total imports during the quarter and dropped out of the country’s top ten imported products.
Implications
The sharp reduction in petrol imports signals a structural transformation in Nigeria’s downstream petroleum sector. Increased domestic refining could reduce demand for foreign exchange, strengthen energy security, improve the country’s trade balance, and lessen dependence on imported fuel. However, industry experts note that maintaining stable local production and ensuring adequate crude supply to domestic refineries will be critical to sustaining these gains.
Conclusion
Nigeria’s N2.18 trillion reduction in petrol imports during the first quarter of 2026 marks one of the most significant shifts in the nation’s energy sector in recent years. The trend highlights the growing role of domestic refining in meeting fuel demand and could reshape Nigeria’s import profile, foreign exchange requirements, and overall economic outlook if sustained.
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