The Dangote Petroleum Refinery imported approximately $3.74 billion worth of crude oil in 2025 to sustain its operations.
This figure was disclosed in the Central Bank of Nigeria’s (CBN) 2025 Balance of Payments report, highlighting a structural shift in Nigeria’s trade dynamics.
Trade Paradox and Market ImpactDespite Nigeria’s status as a leading global crude producer, the refinery relied heavily on foreign feedstock due to persistent domestic supply shortages.
This $3.74 billion expenditure on foreign crude significantly influenced the country’s current account position.
While crude oil exports dropped by 14.41%—falling from $36.85 billion in 2024 to $31.54 billion in 2025 the refinery’s activities helped maintain a goods account surplus of $14.51 billion.
Reduction in Fuel ImportsThe primary economic benefit of the refinery’s 2025 operations was a sharp decline in the importation of refined petroleum products.
National spending on fuel imports fell by 28.88%, dropping from $14.06 billion in 2024 to $10.00 billion in 2025. This transition saved billions in foreign exchange that would have otherwise been spent on finished gasoline and diesel from Europe and the Middle East.
Revenue from Refined ExportsBeyond satisfying domestic demand, the Dangote Refinery emerged as a major exporter of refined products in 2025. The facility generated $5.85 billion in export revenue, further supporting Nigeria’s external reserves, which grew to $45.75 billion by the end of December 2025.
This represents a 13.83% year-on-year increase in reserves, partially attributed to the refinery’s contribution to the trade balance.Feedstock Challenges and Policy EfficacyThe high volume of foreign crude imports, valued at roughly ₦5.734 trillion, underscores the “supply paradox” facing the Nigerian oil sector.
Although the Federal Government introduced a “naira-for-crude” policy to prioritize local supply to domestic refineries, energy analysts noted that the initiative faced implementation hurdles in 2025.
This forced the refinery to source 60 million barrels from international markets in the first half of the year alone to prevent operational downtime.Dangote Refinery’s Economic Impact
Source: Nairametrics
