Nigeria’s foreign exchange demand for oil-sector imports increased sharply in 2025, rising by 114.91 per cent despite the expansion of domestic refining capacity.
The development was disclosed in the Central Bank of Nigeria’s 2025 Annual Report and Statement of Accounts, which showed that foreign exchange used for oil-sector imports climbed to $4.86 billion in 2025, compared with about $2.26 billion in 2024.
According to the report, petroleum-related imports remained the second-largest consumer of foreign exchange among visible imports, accounting for 25.91 per cent of total import-related FX utilisation during the year.
The increase came even as Nigeria continued local production and refining of crude oil into petrol, diesel, aviation fuel and other petroleum products.
The CBN said total foreign exchange utilisation across the economy rose significantly in 2025, driven mainly by higher demand for invisible imports and increased import-related transactions.
Overall FX utilisation expanded by 59.36 per cent to $42.83 billion in 2025, up from $26.88 billion in 2024.
Visible imports accounted for $18.76 billion, representing 43.80 per cent of total FX utilisation, compared with $15.62 billion in the previous year.
The apex bank noted that industrial imports remained the largest user of foreign exchange among visible imports, followed by the oil sector.
A sectoral breakdown showed that industrial imports accounted for 42.11 per cent of visible-import FX utilisation, while the oil sector represented 25.91 per cent. Manufactured products accounted for 15.64 per cent, food products 10.51 per cent, transport 3.78 per cent, minerals 1.04 per cent and agriculture 1.00 per cent.
The CBN said petroleum imports recorded the steepest increase among the major categories.
FX utilisation for oil-sector imports rose by 114.91 per cent to $4.86 billion. Manufactured products increased by 61.70 per cent to $2.93 billion, transport by 52.17 per cent to $710 million, and agriculture by 20.71 per cent to $190 million.
However, utilisation declined in some key sectors. Industrial imports fell by 0.76 per cent to $7.90 billion, while food-product imports dropped by 22.01 per cent to $1.97 billion. Mineral imports declined by 54.85 per cent to $190 million.
The report also showed that foreign exchange used for invisible transactions exceeded that used for visible imports during the year, reflecting stronger demand for financial services, travel and other offshore obligations.
FX utilisation for invisible transactions reached $24.07 billion, accounting for 56.20 per cent of the total and representing a 113.83 per cent increase from $11.26 billion in 2024.
Financial services dominated invisible imports. The amount used for financial services rose by 125.25 per cent to $22.18 billion, while transport services increased by 41.46 per cent to $570 million.
Tourism and travel-related services accounted for $3.72 billion, business services $1.15 billion, and health and social services $30 million.
The CBN said spending on communication, education and other services declined during the period. Communication services fell by 62.82 per cent to $700 million, education by 18.39 per cent to $530 million, and other services by 40.23 per cent to $10 million.
In terms of composition, financial services accounted for 92.12 per cent of total invisible imports, followed by business services at 4.77 per cent, transport services at 2.39 per cent, communication services at 0.29 per cent and educational services at 0.22 per cent.
The rise in oil-sector FX demand came at a time when Nigeria had significantly expanded domestic refining capacity, with the 700,000 barrels-per-day Dangote Petroleum Refinery continuing to increase production.
Despite this, petrol imports remained dominant in 2025, accounting for 62.47 per cent of Nigeria’s total Premium Motor Spirit consumption.
A factsheet on the midstream and downstream petroleum sector showed that national petrol consumption reached about 18.97 billion litres in 2025. Oil marketing companies imported 11.85 billion litres, while domestic refineries supplied about 7.54 billion litres, representing 37.53 per cent of total consumption.
The picture changed in the first half of 2026, when Dangote Refinery emerged as the dominant supplier of PMS and petrol imports fell by 65.7 per cent.
The Federal Government has repeatedly said that increased local refining would reduce dependence on imported petroleum products, conserve foreign exchange, strengthen energy security and improve the balance of payments.
However, pricing has remained the key factor influencing marketers’ choice of supplier, amid growing competition between local refiners and fuel importers.
The National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers would naturally buy from whichever source offered the lowest price.
According to him, thin profit margins leave marketers with little room for sentiment, and decisions are driven by economics rather than emotion.
He added that the price difference between locally refined products and imported fuel changes frequently, depending on global crude prices, exchange rates and government policies.
Industry operators also noted that petroleum import bills cover more than PMS, including crude oil swaps, refined products, lubricants, petrochemical feedstocks, refinery equipment, catalysts, additives and other inputs required across the downstream petroleum value chain.
