Nigeria Cuts Fuel Imports as Dangote Refinery Raises Production
- Nigeria’s domestic refining capacity increased by 57% over three months, reducing fuel imports
- NMDPRA noted that the Dangote Petroleum Refinery drove most of the increase in output
- Analysts said sustained gains will depend on crude supply, infrastructure, and consistent policies
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria has recorded a significant drop in fuel imports as domestic refining output rose sharply in recent months, signalling progress in the country’s drive toward energy self-sufficiency.
Source: Getty Images
Data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in its January fact sheet showed that the total daily supply of Premium Motor Spirit (PMS), also known as petrol, declined to 64.9 million litres in January. This represents a drop from the 74.2 million litres recorded in December 2025.
Domestic production takes a larger share
Despite the overall decline in supply, local refining accounted for the larger portion of the volume. According to the regulator, domestic production contributed 40.1 million litres per day, representing 57.5% of total supply.
This marks a notable rise from 17.1 million litres per day in October 2025, reflecting a 57% increase in refining capacity over three months.
Meanwhile, imports by oil marketers and the Nigerian National Petroleum Company Limited (NNPCL) dropped to 25.8 million litres daily in January, highlighting reduced reliance on foreign supply.
The NMDPRA attributed the growth in local supply to improved output from the Dangote Petroleum Refinery, noting that domestic PMS supply rose from 32 million litres per day in December to 40.1 million litres in January.
Dangote Refinery boosts output
The Dangote refinery accounted for most of the increase, raising its production by about 25% month-on-month. However, output remains below its 75 million litres per day domestic target.
The facility operated at an average capacity utilisation rate of 61.27%, with a peak of 67.69%, indicating ongoing efforts to scale up operations as Nigeria pushes for greater fuel independence.
On February 11, 2026, the refinery announced that it had reached its full nameplate capacity of 650,000 barrels per day. Reacting to the development, billionaire investor Femi Otedola described the milestone as transformative for Nigeria’s energy sector.
He expressed optimism that sustained local refining could reduce pressure on foreign exchange, strengthen the naira, and improve investor confidence. Otedola also projected that further investment of $12 billion could expand production capacity to 1.4 million barrels per day, particularly in petrochemicals.
State-owned refineries remain idle
The report showed that Nigeria’s state-owned refineries are yet to resume meaningful operations.
The Port Harcourt refinery is currently shut down, although diesel evacuation from previously produced stock averaged 0.376 million litres per day. The Warri and Kaduna refineries also remain non-operational.
Meanwhile, the domestic supply of Automotive Gas Oil (diesel) averaged 10.9 million litres per day, suggesting gradual gains in broader refining output.
Source: Getty Images
Economic implications
Analysts say the increase in local refining comes at a crucial time for Nigeria’s economy, as fuel imports have historically consumed billions of dollars in foreign exchange and contributed to inflationary pressures, especially amid subsidy reforms.
With domestic PMS now accounting for 57% of supply, experts believe the development could ease demand for foreign currency and potentially position Nigeria as a net exporter of refined products in the future.
However, they caution that sustaining the gains will depend on steady crude supply, infrastructure improvements, rehabilitation of public refineries, and policy consistency under President Bola Tinubu’s administration.
As import volumes decline, retail fuel prices have largely stabilised, offering some relief to consumers and transport operators.
Industry stakeholders are now looking ahead to subsequent monthly data to assess whether the upward trend in domestic refining will continue.
Dangote crashes petrol price
Legit.ng earlier reported that the Dangote Refinery recently slashed its gantry petrol of price for marketers by N27 per litre amid private depot competition
The new rate of N772.50 would encourage marketers to lift more fuel, helping the refinery maintain competitive pricing and boost throughput
The refinery promised to meet domestic fuel demand and ease fuel costs for consumers.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
