From Imports To Independence: Petrol Bill Falls to $10bn

Nigeria’s petrol import bill has dropped to about $10 billion annually, down from previous higher levels, as local refining capacity improves and fuel consumption patterns change.

Officials from the Ministry of Petroleum Resources said the reduction followed increased output from domestic refineries and tighter controls on fuel importation. They noted that the country is gradually moving toward self-sufficiency after decades of relying heavily on imported petrol.

The government said the restart of major refining facilities, along with private sector investments, has reduced pressure on foreign exchange and helped stabilise the naira. Authorities also linked the decline to subsidy removal, which they said discouraged smuggling and excessive consumption.

Energy experts explained that Nigeria previously spent billions of dollars every year importing petrol despite being one of the world’s largest crude-oil producers. The situation strained public finances and contributed to recurring fuel shortages.

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Officials added that ongoing rehabilitation of state-owned refineries and the expansion of private plants are expected to cut imports even further in the coming years. They said the long-term goal is to make Nigeria a net exporter of refined petroleum products.

Economists say the drop in import costs could free funds for infrastructure, healthcare and education if savings are properly managed. However, they warned that the benefits will depend on consistent refinery operations and stable crude-oil production.

Labour groups have urged the government to ensure that lower import costs translate into affordable fuel prices, arguing that many Nigerians are still struggling with the impact of subsidy removal.

Authorities insist that the reforms are necessary to end decades of wasteful spending and build a stronger, more independent energy sector.