CBN releases $1.25bn for fuel imports and related transactions

The Central Bank of Nigeria (CBN) has disbursed a total of $1.259 billion to players in the oil sector for the importation of petroleum products and related items, The PUNCH reports.

The funds, released within the first quarter of 2025, come amid ongoing fuel importation by marketers despite the availability of locally refined petrol from the Dangote Refinery.

Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that petroleum marketers accounted for 69% of the 21 billion litres of petrol consumed in Nigeria between August 2024 and early October 2025.

Between January and March 2025, a total of 2.28 billion litres of petrol were imported, despite increased output from local refineries. Fuel importation continues to exert pressure on Nigeria’s foreign reserves and the naira due to its high demand for foreign exchange.

The import volume represents one of the lowest in recent years, indicating a gradual shift toward local refining and blending of petroleum products.

According to the CBN’s Quarterly Statistical Bulletin for Q1 2025, the apex bank allocated $1.26 billion for import-related transactions. A monthly breakdown showed

January: $457.83 million (36.2%)

February: $283.54 million (22.5%)

March: $517.55 million (41.3%)

Similarly, NMDPRA figures show fuel imports of 724.5 million litres in January, 760 million litres in February, and 803.7 million litres in March.

Market rivalry intensifies

Competition between the Dangote Petroleum Refinery and fuel-importing marketers has grown fiercer, as both sides vie for market dominance in Nigeria’s downstream sector.

While some marketers persist with importation, Dangote Refinery has been exporting refined petrol to countries including the United States, emphasizing its 650,000 barrels-per-day capacity to meet domestic demand and export surplus volumes.

However, price differences remain the key factor influencing marketers’ sourcing decisions. Many operators in the downstream sector continue to choose suppliers based on cost advantages rather than loyalty.

Speaking on the development, Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained:

“In this business, pricing is everything. Marketers will always choose the most affordable option because profit margins are very slim. If imported products are cheaper, we’ll buy from importers; if Dangote offers a better price, we’ll buy locally.”

He added that the price gap between imported and locally refined petrol fluctuates with global oil prices, exchange rates, and government policies.

“No marketer can afford sentiment in this business. Survival is based purely on economics,” Ukadike stated.

Meanwhile, the Major Energies Marketers Association of Nigeria (MEMAN), in its latest Energy Bulletin, reported a decline in the import parity price of key petroleum products. The report attributed this to persistent global oil price volatility and exchange rate pressures, noting that the import parity price of Premium Motor Spirit (PMS) has dropped to ₦805.46 per litre at the current spot rate.