₦airaland Forum

The Central Bank of Nigeria has released a total sum of $1.259bn to oil sector players for the importation of petroleum products and other related items into the country, The PUNCH reports.

The amount released between the first three months of 2025 is against the backdrop of the insistence of marketers to continue fuel import despite the availability of petrol from Dangote Refinery.

According to fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Petroleum marketers imported 69 per cent of the 21 billion litres of petrol Nigerians consumed between August 2024 and the first 10 days of October 2025.

Between January and March 2025, a total of 2.28 billion litres of petrol were imported despite improved refined product output from the Dangote refinery.

Fuel imports, a significant consumer of foreign exchange, impact the country’s foreign reserves and the naira-to-dollar rate.

The volume represents one of the lowest quarterly import figures in recent years, reflecting the gradual shift towards local refining and blending of petroleum products.

A breakdown using the Central Bank of Nigeria’s quarterly statistical bulletin for the first quarter of 2025, the apex bank released a total of $1.26bn for import transactions between January and March.

A month-by-month breakdown showed that $457.83m was disbursed in January, representing 36.2 per cent of the total.

This dropped sharply to $283.54m in February, accounting for 22.5 per cent, before rebounding to $517.55m in March, which made up the largest share at 41.3 per cent of the total forex released for the quarter.

While NMDPRA data showed that the January imports stood at 724.5million litres, while 760 million litres and 803.7 million litres were brought in during February and March, respectively.


The struggle for market share between the Dangote Petroleum Refinery and fuel-importing marketers has intensified in recent months, as both sides compete for dominance in Nigeria’s downstream sector.

It could be recalled that while some marketers have insisted on importation, the Dangote refinery has been exporting petrol to other countries, including the United States. The 650,000 refinery has consistently boasted of its capacity to meet local fuel demands while exporting to foreign countries.

However, pricing has remained the major determinant for marketers when choosing a supplier, amid growing competition between the Refinery and fuel importers. Many operators in the downstream sector shift allegiance based on cost advantage rather than source.

Confirming the development, the National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers would naturally buy from any source offering the lowest price to stay in business.


Ukadike explained in an interview, “In this business, pricing is everything. Marketers will always go for the most affordable option because our margins are very thin. If imported products are cheaper, we have no choice but to patronise importers. But if Dangote’s refinery offers a better price, of course, we will buy locally.”

He added that the price gap between locally refined products and imports fluctuates depending on global oil prices, exchange rates, and government policies.

“No marketer can afford sentiment when it comes to survival,” he said. “Our decision is driven by economics, not emotion.”

Meanwhile, the latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria has shown a further reduction in the estimated import parity price of key petroleum products, reflecting sustained pressure from global oil prices and exchange rate fluctuations.

According to the report, the estimated import parity price of Premium Motor Spirit has reduced to N805.46 per litre at the spot rate.

Source: https://punchng.com/cbn-pumps-1-25bn-into-fuel-import-others

If they allow dangote he go turn am to the way him take spoil the cement sector in Nigeria, they should give him a run for his money, if he is allowed to become a monopolist in the sector ,which is his goal, Nigerians go see wehn

So what's the big deal here?. Some economic illiterates will read the headline and start screaming. The oil sector has been liberalized, the market is open to every player. If oil marketers go to the CBN to request for foreign exchange to import fuel, that's fair game in the sector. The fact is, we cannot even stop importation in the next 5years to put it reasonably. Even though Dangote is already trying to expand its capacity to 1.4million barrel per day. The marketers will still go to the buyers that sell cheaper to them and best serves their interests.
The good thing in all of this, is the fact that Nigeria spent $1.2b on fuel importation in the first three months of this year which is a remarkable improvement compared to the time we were spending a whooping $20 billion on fuel importation aside from the subsidy that would still be paid on it. This gulped about 40% of our foreign exchange revenue. Now we have been able to turn the tide. With the expectation of more refineries coming up like BUA & a few others as well as the expansion of the capacity of Dangote refinery before the year end, we expect even much less importation and much less foreign exchange demand for fuel importation.

APC is one of the most clueless parties in the history of Nigeria 🇳🇬

What are they pumping it to do? The economy is in shambles yet they spend billions of dollars doing nothing, fuel ⛽ price and dollar has crippled the country economy and this is kudu to APC

Why are we still importing ?
We were told DR has the capacity to supply our needs and even export to other countries.
Poor economic strategy.
That's why our exchange rate remains high.
We need to reduce demand for dollars drastically.

Dangote wan run Nigerians street.

That's good for competition because i no trust that Dangote guy though i like his strides.

I've come to realize that there's no truth in Nigeria at all.... We were told that Dangote is meeting the the daily needs of fuel in Nigeria and we don't need to import and now we are hearing a different thing.

surgical:
If they allow dangote he go turn am to the way him take spoil the cement sector in Nigeria, they should give him a run for his money, if he is allowed to become a monopolist in the sector ,which is his goal, Nigerians go see wehn

You don't mean it. Nigerians deserve the kind of leaders the have. This is the kind of reasoning that will continue to leave so many in poverty, while the political class keeps stealing their common wealth.

So Tinubu looting the treasury for the so - called fuel importation using his proxies is called checking Dangote's monopoly. The same Dangote that is exporting fuel to other African countries and the USA.

How come for decades the government couldn't manage the refineries to produce fuel for local consumption and export to check monopoly long before Dangote came on board? Isn't it crude oil they kept exporting, and importing fuel from time immemorial to keep stealing?
It's so unfortunate.

Meektunz:
Ive home to realize that there's no truth in Nigeria at all.... We were told that Dangote is meeting the the daily needs of fuel in Nigeria and we don't need to import and now we are hearing a different thing.

Who told you that? Give a name so we know whom to face.

adenigga:
Source: https://punchng.com/cbn-pumps-1-25bn-into-fuel-import-others

This is understandable because Tinubu and APC said that the fuel from Dangote refinery is not good quality. The progreThieves are labouring in vain to play politics with the refinery that was licensed by PDP deregulation and privatisation capitalists who gave us cheap fuel, cheap dollars, low unemployment and low insecurity with low inflation, low interest rates and high GDP per capita.

Why did we allow Tinubu to turn this into APC extreme poverty shege a decade ago




https://www.youtube.com/watch?v=jdbSPnElA0Y




https://www.youtube.com/watch?v=3eukKEOSi-8

anonimi:
Petrol should never cost more than N70 per litre, says APC

January 19, 2015

The All Progressives Congress (APC) has described as mere tokenism the reduction of petrol price from N97 to N87 per litre, saying the petroleum product ordinarily should sell for N70.

On Sunday, the federal government announced the reduction of petrol price, citing the fall of global crude oil price.

But the APC through Lai Mohammed, its spokesman, on Monday accused the government of making a show out of deceit, saying “a 10.3 per cent slash in the price of petrol was a mere tokenism at a time the price of crude oil has crashed by about 60 per cent”.

It argued that the pump price of a litre of petrol should not be more than 70 Naira, alleging that at N87 per litre, the government was forcing Nigerians to subsidise the massive corruption in the oil sector by N17 for every litre of fuel.

https://www.thecable.ng/petrol-never-cost-n70-per-litre-says-apc/

>>
>>>>

Buhari’ll reduce petrol to N40/L —David-West

FORMER Minister of Petroleum and Energy, Prof. Tamunoemi David-West, said that Nigerians should expect sharp drop in petrol price from the current N87 to about N40 per litre, saying, “the president-elect, Gen. Mohammed Buhari, will reduce the fuel pump price to N40 per litre.”

https://www.vanguardngr.com/2015/04/buharill-reduce-petrol-to-n40l-david-west/

This is what you get when there is 0% transparency.

I thought they said gas prices don come down.

Now I see the incentive in exporting refined petrol to US. While a liter is about #900 in Nigeria . A gallon (3 liters) of petrol in the US is averagely $2.5.
If Dangote was to sell his refined petrol in Nigeria, that 3 liters (one gallon) would just #2700. So basically the difference in price when calculated in Naira is 4500 - 2700 = 1800 for each gallon sold to the US.

Image123:
That's good for competition because i no trust that Dangote guy though i like his strides.

Is it also good for Tinubu’s N300/$1 short term goal, which he has failed to achieve despite borrowing $3.3 billion to defend the Naira and saving $84 billion from subsidy removal?

The expired soldier Tinubu packaged as change messiah of All Promises Cancelled, APC also failed to deliver on a similar promise.

anonimi:
World Bank offers Nigeria forex rate advice, as Tinubu eyes N200/Dollar rate

April 23, 2023

The President-elect said he would work with the Central Bank of Nigeria (CBN) to *bring down the exchange rate to N200 in his first term.*

“My administration will collaborate with the Central Bank to harmonize the fiscal and monetary policy to achieve immediate stabilization of the value of the naira against the US dollars and other currencies and in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.

“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years, Tinubu stated.

https://www.ripplesnigeria.com/world-bank-offers-nigeria-forex-rate-advice-as-tinubu-eyes-n200-dollar-rate/?amp
>>>
>>>

Muhammadu Buhari, presidential candidate of the All Progressives Congress (APC), has promised to ensure that the naira would be equal to the dollar in value if voted into office.

NAN reports that Buhari said this on Monday during the south-east presidential rally of the party at Dan Anyiam Stadium, Owerri.

“It is sad that the value of the naira has dropped to more than N230 to one dollar. This does not speak well for the nation’s economy,” he said.

He urged the people to vote for APC, noting that he would ensure that corruption was tackled headlong if elected.

https://www.thecable.ng/ill-make-naira-equal-dollar-says-buhari/amp

sonnie10:
Now I see the incentive in exporting refined petrol to US. While a liter is about #900 in Nigeria . A gallon (3.2 liters of petrol in the US is averagely $2.5.

If Dangote was to sell his refine petrol in Nigeria, that 3 liters would just #2700. So basically the different in price when calculated in Naira is 4500 - 2700 = 1800 for each gallon sold to the US.

Are you saying that Tinubu is subsidising petrol prices even though he announced that subsidy is gone in May 2023

anonimi:
Are you saying that Tinubu is subsidising petrol prices even though he announced that subsidy is gone in May 2023

What I mean is that even if Dangote is only selling half of his refinery capacity to the US (300,OO0) , everyday he will be making additional profit of 1800 x 300000 = #540M from the US export alone.

Putindbutt:
The fact is, we cannot even stop importation in the next 5years to put it reasonably.

^^^
And why is that?

The solution is local competition. But BAT isn't interested in tweaking the policy mix to accelerate and incentivize the number of local producers. It doesn't take 5 years to build modular refineries.

Putindbutt:
With the expectation of more refineries coming up like BUA & a few others as well as the expansion of the capacity of Dangote refinery before the year end, we expect even much less importation and much less foreign exchange demand for fuel importation.

^^^
Time will tell.

surgical:
If they allow dangote he go turn am to the way him take spoil the cement sector in Nigeria,

they should give him a run for his money, if he is allowed to become a monopolist in the sector ,which is his goal, Nigerians go see wehn

Is BUA not manufacturing cement along with other companies?

Why are you talking about refinery monopoly by Dangote when NNPC’s refineries are operating since 2015 and exporting since last year?

Princecalm:
Jul 29, 2015

The Nigerian National Petroleum Corporation has announced that the Port Harcourt and Warri refineries have been successfully re-streamed after a nine-month rehabilitation exercise conducted by its in-house engineers and technicians.

The corporation, in a statement, noted that both plants commenced preliminary production of petroleum products after successful test-runs, adding that while PHRC was ramping up its operation to about 60 per cent of its 210,000 barrels per day capacity, WRPC production was projected to hit 80 per cent of its installed 125,000bpd capacity.

The NNPC said the Port Harcourt refinery was projected to boost the nation’s local refining capacity with a product yield of five million litres of petrol per day, while Warri refinery would contribute 3.5 million litres of petrol.

Providing insight into the rehabilitation exercise, the NNPC noted that it had to adopt the phased rehabilitation strategy after the Original Refinery Builders, who were initially contacted for the project came up with unfavorable terms.

It said, “Though a decision was taken in 2011 to rehabilitate all the refineries using the ORB of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms.”

The NNPC stated that the nominated partners, as sole-bidders, came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations.

It added that the proxies were also unwilling to provide post rehabilitation performance guarantees.

The corporation said, “The phased rehabilitation strategy which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.”

The national oil firm said the phased rehabilitation programme, which started in October 2014 after the required funding stream was established, created a 70 per cent reduction in costs which helped largely in mitigating the financing challenges of refinery rehabilitation.

It observed that with the successful re-streaming of the PHRC and WRPC, attention has now moved to the 110,000 barrels per day Kaduna Refining and Petrochemicals Company which was billed to come on stream soon.

http://www.punchng.com/news/pharcourt-warri-refineries-commence-preliminary-operations-nnpc/

>>
>>>>

saintopus:
The PH Refinery ships its first export of petroleum products to Dubai.

The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.

The ship will load 15,000 metric tons of the product, which translates to about 13.6 million litres.

Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.

https://guardian.ng/energy/nnpc-begins-export-from-ph-refinery-as-dubai-firm-buys-first-cargo/

sonnie10:
What I mean is that even if Dangote is only selling half of his refinery capacity to the US (300,OO0) , everyday he will be making additional profit of 1800 x 300000 = #540M from the US export alone.

How much do you think the imported petrol costs?

Do you think it costs much lower than the price of petrol in our country

Propaganda from both the pro and anti tinubu geng on this thread

Good morning.

anonimi:
Is it also good for Tinubu’s N300/$1 short term goal, which he has failed to achieve despite borrowing $3.3 billion to defend the Naira and saving $84 billion from subsidy removal?

The expired soldier Tinubu packaged as change messiah of All Promises Cancelled, APC also failed to deliver on a similar promise.

That's a ridiculous goal IMHO. Same way some of you kept ranting that Buhari was to make 1 naira to 1 dollar. Ignorance is bliss.

Nackzy:
APC is one of the most clueless parties in the history of Nigeria 🇳🇬

Please explain why in context of this post. I’m 100% sure you have zero understanding of the point of discourse

anonimi:
Are you saying that Tinubu is subsidising petrol prices even though he announced that subsidy is gone in May 2023

No. No more subsidies payments

Thanks for the explanation. You forgot to also inform us that " Releasing that amount by CBN doesn't mean it's free or a gift to the marketers for their importation of fuel. It's the total conversion of the amount of naira they paid to the CBN for conversion to Dollars through their Form M and other importation documents.


quote author=Putindbutt post=137257849]So what's the big deal here?. Some economic illiterates will read the headline and start screaming. The oil sector has been liberalized, the market is open to every player. If oil marketers go to the CBN to request for foreign exchange to import fuel, that's fair game in the sector. The fact is, we cannot even stop importation in the next 5years to put it reasonably. Even though Dangote is already trying to expand its capacity to 1.4million barrel per day. The marketers will still go to the buyers that sell cheaper to them and best serves their interests.
The good thing in all of this, is the fact that Nigeria spent $1.2b on fuel importation in the first three months of this year which is a remarkable improvement compared to the time we were spending a whooping $20 billion on fuel importation aside from the subsidy that would still be paid on it. This gulped about 40% of our foreign exchange revenue. Now we have been able to turn the tide. With the expectation of more refineries coming up like BUA & a few others as well as the expansion of the capacity of Dangote refinery before the year end, we expect even much less importation and much less foreign exchange demand for fuel importation.[/quote]

Nackzy:
APC is one of the most clueless parties in the history of Nigeria 🇳🇬

I know U did not read. Just jump into conclusion as usual. Everything is APC. APC should cook rice for ubto eat and clean your bobom after pooing. Lol

Without Dangote refinery, Nigerians would be buying fuel N1500 per liter by now. Recall it was once sold for N1200, and the narrative given was that landing cost has increased. Each time they wanted to increase fuel price, landing cost was the unanimous reason they all gave.
The question I keep asking is what has happened to the landing cost. we can now see those who were truly behind the misery Nigerians were facing.

Let's look at it this way, those importing are going to navigate the differential in currency, face shipping cost, custom's duty and all administrative charges, finally transportation cost to final consumers. If they pay all these and still sale the fuel at the a price not different from Dangote, then it means they were making abnormal profits selling above 1000.
And the worst was that they kept on defending the evil while Nigerians suffered, well they did so because an average Nigerian doesn't know who to hold accountable. The blame was on Tinubu, and I trust the man, he absolved the shuck, took the insults, now who is feeling the heat, not him any longer but the importers.

anonimi:
Are you saying that Tinubu is subsidising petrol prices even though he announced that subsidy is gone in May 2023

You are jst looking for something negative to complain about. Rest biko

sonnie10:
What I mean is that even if Dangote is only selling half of his refinery capacity to the US (300,OO0) , everyday he will be making additional profit of 1800 x 300000 = #540M from the US export alone.

But you have forgotten he will pay both export and import taxes, profit tax, custom duties, transportation overseas etc. it's not as profitable as U think. But if he sells in Nigeria, all those taxes won't apply

Putindbutt:
So what's the big deal here?. Some economic illiterates will read the headline and start screaming. The oil sector has been liberalized, the market is open to every player. If oil marketers go to the CBN to request for foreign exchange to import fuel, that's fair game in the sector. The fact is, we cannot even stop importation in the next 5years to put it reasonably. Even though Dangote is already trying to expand its capacity to 1.4million barrel per day. The marketers will still go to the buyers that sell cheaper to them and best serves their interests.
The good thing in all of this, is the fact that Nigeria spent $1.2b on fuel importation in the first three months of this year which is a remarkable improvement compared to the time we were spending a whooping $20 billion on fuel importation aside from the subsidy that would still be paid on it. This gulped about 40% of our foreign exchange revenue. Now we have been able to turn the tide. With the expectation of more refineries coming up like BUA & a few others as well as the expansion of the capacity of Dangote refinery before the year end, we expect even much less importation and much less foreign exchange demand for fuel importation.

This is a great submission but as you rightly said that some economic illiterates who will only read the headline and go straight to the comments section and start screaming are already doing so.

Tinubu removed petrol subsidy which led to increase in transportation cost and virtually every other thing in Nigeria by x10.

Removed subsidy on tertiary education tuition fee for Nigerian students which led to increase in university school fees and he cunningly brought student loan, loan not grant.

Tinubu brought Telecom tax, this pushed data price up.

He still went ahead to tax 50 naira for any transactions of 10,000 naira and above

Tinubu devalued Naira and unified our exchange rate which jerked exchange rate up and led to increase in commodity prices in Nigeria.

Tinibu increased the of clearing of goods 6 times in less than 3years in office, upto 800%

Tinubu removed subsidy on electricity tariffs and introduced band A, band B, C billing system which led to increase in electricity bill by x10

Tinubu is introducing new tax law that will force many struggling businesses to start paying huge tax from 2026.

Tinubu introduced new vehicle ownership style whereby every owner of vehicle in Nigeria now pay to FG every year to renew the ownership of their car. So every year you pay Tinubu to verify that your car is still your car not that you sold the car to a new owner.

Braze up for patrol tax from next year you pay 45naira for every 1 liter of fuel you buy 😭😭

Tinubu is now introducing house insurance which will cause annual rent in Nigeria to increase by x2 so that people paying NGN2 million per flat in a year will now pay NGN3.5million to NGN4million once he implements the housing insurance policy and Una say this man called Tinubu should not be impeached before 2027?

Nigerians continue playing na my tribes man, e go soon clear for una eyes shocked

May the supporters of this inhumanity never end well, may the cry of poor Nigerians reach God's heart 😭😭