The Central Bank of Nigeria (CBN) has disbursed a total of $1.259 billion to oil sector players for the importation of petroleum products and related items within the first three months of 2025, The PUNCH reports.
The development comes amid ongoing controversy surrounding the continued importation of petrol by marketers, despite the availability of refined products from the Dangote Petroleum Refinery and other local producers.
According to data obtained from the apex bank, the foreign exchange allocations were made to licensed oil marketers and depot owners to facilitate the importation of Premium Motor Spirit (PMS), Automotive Gas Oil (diesel), aviation fuel, and other petroleum derivatives.
Industry analysts say the release underscores the CBN’s effort to stabilize fuel supply and curb the volatility that has characterized the downstream sector in recent months. However, it also raises questions about why Nigeria still relies heavily on fuel imports despite local refining capacity being available.
Sources within the downstream sector noted that while the Dangote Refinery has begun supplying petrol and diesel to the domestic market, most marketers still prefer importing products due to pricing structures, contractual obligations, and access to foreign exchange.
A senior industry executive who spoke on condition of anonymity said:
The Dangote Refinery has started production, but its supply chain and pricing framework are still being fine-tuned. Many marketers are still tied to import contracts that were agreed before local supply became viable.”
Meanwhile, some stakeholders have criticized the CBN’s continued dollar allocations for fuel imports, describing it as counterproductive to Nigeria’s drive for self-sufficiency in petroleum refining. They argued that the foreign exchange could be better utilized to support local refining operations and ease pressure on the naira.
Energy economist Dr. Jide Adebayo said the continued dependence on fuel imports highlights policy inconsistency in the downstream sector.
Releasing over a billion dollars for fuel importation when we have local refineries capable of meeting demand sends the wrong signal. It undermines confidence in domestic production and slows the path to energy independence,” he said.
However, defenders of the CBN’s move say the intervention was necessary to prevent supply disruptions and ensure that market prices remain stable pending full integration of local refining capacity into the distribution network.
The Federal Government has in recent months reiterated its commitment to achieving full energy self-sufficiency and ending the country’s reliance on imported fuel. President Bola Tinubu’s administration has also emphasized collaboration between the government and private sector refineries, including Dangote and modular operators, to meet domestic demand.
As the debate continues, industry observers are calling for greater policy alignment between the CBN, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Ministry of Petroleum Resources to ensure a seamless transition from import dependence to local refining.
