Nigeria’s dependence on imported fuel continues to weigh heavily on its economy, with the country spending a staggering N4 trillion on imports in just the first six months of 2025.
Figures released by the National Bureau of Statistics (NBS) show that in the second quarter (Q2) alone, fuel imports cost N2.3 trillion, up from the N1.76 trillion recorded in the first quarter (Q1). This brings the cumulative half-year expenditure to N4 trillion, translating to approximately $2.58 billion at an exchange rate of N1,550 to the U.S. dollar.
The rising import bill underscores the strain on Nigeria’s foreign reserves and highlights the challenges posed by the country’s limited domestic refining capacity. Despite decades of being Africa’s top oil producer, Nigeria continues to rely on imported refined products to meet local demand.
Analysts note that the figures come at a time when the Federal Government is pushing reforms to revive local refining, including the much-anticipated operations of the Dangote Refinery and rehabilitation of state-owned refineries. However, until these projects come fully on stream, the financial pressure of fuel imports is expected to persist.
Economists warn that the trend could further weaken the naira, deepen inflationary pressures, and strain public finances, especially as subsidies remain a politically sensitive issue.
The NBS data provides a stark reminder of Nigeria’s energy paradox: a nation rich in crude oil but burdened by its dependence on foreign refineries to keep its economy running.
