The Federal Government has announced a dramatic reduction in Nigeria’s petrol import bill from N2.3 trillion in the first quarter of 2025 to under N90 billion currently, attributing the decline to increased local refining capacity.
Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, disclosed this at the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos. She noted that local petrol production has risen from effectively zero in 2023 to about 48 million litres per day. “For the first time in a generation, the majority of the petrol Nigerians consume is now refined at home,” Verheijen said. She explained that the sharp drop in imports has eased pressure on foreign exchange reserves and strengthened the naira.
The development follows the removal of fuel subsidies and exchange rate reforms under President Bola Tinubu’s administration. Verheijen also highlighted improved crude oil production, averaging 1.64 million barrels per day in 2025, and the completion of over $4 billion in international oil company divestments. She described the reforms as necessary to stop fiscal bleeding and rebuild the sector’s foundations. The government maintained that deregulation has prevented chronic fuel queues while boosting federation revenue.
This significant reduction in the petrol import bill represents a major achievement in Nigeria’s quest for energy self-sufficiency and has far-reaching implications for the economy. Lower import dependency is expected to conserve foreign reserves, stabilise the exchange rate, and free up funds for critical infrastructure and social programmes. Industry analysts view the development as validation of the government’s bold energy sector reforms, even as they caution that sustained local refining capacity and improved crude production will be key to maintaining the gains.
The announcement has been welcomed by stakeholders, with many noting its potential to ease inflationary pressures and improve living standards. As Nigeria continues to ramp up domestic refining, the focus now shifts to ensuring efficient distribution and addressing remaining challenges in the downstream sector.
