Nigeria spent N952.15bn on imported Premium Motor Spirit, PMS, in the second quarter of 2026, despite increased domestic refining capacity and an intensifying disagreement between the Dangote Petroleum Refinery and fuel importers.
An analysis of the National Bureau of Statistics’ Foreign Trade in Goods Statistics for Q2 2026, published on Monday, showed that the value of petrol imports increased by almost 11 times compared with the first quarter.
Nigeria had spent N87.40bn on PMS imports between January and March 2026. The figure rose to N952.15bn between April and June, representing an increase of N864.75bn, or 989.4 per cent.
The NBS identified “Motor Spirit Ordinary” as Nigeria’s largest imported commodity during the quarter, ahead of crude petroleum, durum wheat, used diesel-powered vehicles and motorcycles.
At N952.15bn, imported PMS represented 6.60 per cent of Nigeria’s total N14.42tn import bill for the quarter.
Petrol Imports Still Below 2025 Level
Despite the sharp quarter-on-quarter increase, the latest figure remains considerably lower than the value recorded during the same period in 2025.
Nigeria imported N2.83tn worth of PMS in Q2 2025, meaning the N952.15bn recorded in Q2 2026 represents a year-on-year decline of approximately N1.88tn, or 66.4 per cent.
The figures therefore show that Nigeria’s reliance on imported petrol has reduced substantially compared with last year, even though imports rebounded strongly after falling to N87.40bn in the first quarter of 2026.
Dangote, Importers Clash Over Fuel Imports
The renewed increase in petrol imports comes against the backdrop of an ongoing dispute between the Dangote refinery and petroleum marketers over the continued importation of refined petroleum products.
The PUNCH had reported that the Dangote refinery was considering stopping petrol sales to major marketers who continue to import PMS.
One of the refinery’s concerns is the alleged practice of blending imported petrol with products purchased from the Dangote refinery before distributing them to consumers.
The refinery has argued that such practices could make it difficult to determine whether fuel in the market was supplied directly by Dangote or had subsequently been mixed or handled by third parties.
Dangote has also questioned the adequacy of laboratory and quality-control facilities available to independently test and certify imported petroleum products entering Nigeria.
The proposed restriction on sales to importing marketers could take effect following further consultations and possible intervention, according to sources cited by The PUNCH.
Dangote Warns of Rising Imports
The development followed a warning from the Dangote refinery that increasing petrol imports were forcing it to export excess production despite having the capacity to meet domestic demand.
According to the refinery, imported PMS accounted for about 43 per cent of fuel supplied to the Nigerian market in July.
Dangote said the continued issuance of petrol import licences was creating uncertainty about domestic demand and making it increasingly difficult to plan production and manage inventories.
The refinery maintained that it had consistently kept sufficient stocks and reserved volumes to ensure uninterrupted supply to the domestic market.
However, it said holding large inventories became commercially difficult when there was limited certainty about the volume of imported petrol that would subsequently enter the market.
The refinery said excess petrol that could not be absorbed domestically would therefore have to be exported to regional and international markets.
Marketers Reject Dangote’s Position
Fuel importers and petroleum marketers have opposed the reported plan to stop supplying petrol to marketers who import the product.
They described the proposed action as an attempt to restrict competition and called on the Dangote refinery to provide evidence that imported PMS entering Nigeria failed to meet required quality standards.
The dispute has consequently intensified the wider debate over the role of imported petrol as Nigeria expands its domestic refining capacity.
Import Value Rises Despite Lower Volumes
Data from the NBS and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, indicate that the dramatic increase in the value of petrol imports may not have resulted from a corresponding increase in import volumes.
NBS figures showed that the value of PMS imports increased from N87.40bn in Q1 2026 to N952.15bn in Q2.
However, NMDPRA data showed that imported PMS averaged 11.23 million litres per day in Q1.
The average daily volume subsequently declined by 17.8 per cent to 9.23 million litres per day in Q2, even though monthly imports increased from 3.7 million litres per day in April to 18.1 million litres per day in June.
The figures suggest that higher international fuel prices may have played a significant role in the increased import bill.
The period also coincided with the US-Iran war, which disrupted global oil supplies and pushed up the prices of crude oil and refined petroleum products.
Domestic Refining Gains Ground
While imported PMS volumes declined on average, domestic refinery supply moved in the opposite direction.
Domestic refinery output increased from an average of 34.57 million litres per day in Q1 to 38.23 million litres per day in Q2, representing a 10.6 per cent increase.
As a result, the share of PMS supplied by domestic refineries rose from approximately 75.5 per cent to 80.5 per cent, while the contribution of imports fell from 24.5 per cent to 19.5 per cent.
The figures indicate that locally refined petrol continued to account for the larger portion of supply despite the significant increase in the value of imports.
Imported Petrol More Expensive Than Dangote Product
The competitiveness of imported petrol has also come under pressure because of the difference between import-parity prices and Dangote’s local selling price.
The latest energy bulletin from the Major Energies Marketers Association of Nigeria, MEMAN, showed that the Dangote refinery’s gantry price was N1,265 per litre, while the spot import-parity price stood at N1,310.64 per litre under the ASPM benchmark.
Under another benchmark, the import-parity price was N1,309.63 per litre.
This means imported petrol was N45.64 per litre more expensive than Dangote’s product under the ASPM benchmark and N44.63 higher under the NPSC-NOJ benchmark.
The price difference emerged shortly after Dangote increased its gantry price from N1,165 to N1,265 per litre.
Despite the N100 increase, Dangote petrol remained cheaper than the prevailing spot import-parity price, according to MEMAN.
The bulletin also placed the refinery’s coastal PMS price at N1,245 per litre.
IPMAN Calls for Review of Import Licences
The price gap has strengthened calls from some petroleum marketers for the Federal Government to reconsider the continued importation of PMS.
The Independent Petroleum Marketers Association of Nigeria, IPMAN, has argued that imported petrol is now more expensive than locally refined fuel and could undermine efforts to stabilise prices in the downstream sector.
IPMAN also said the continued issuance of fuel import licences was contributing to price volatility, placing additional pressure on the naira and reducing the competitiveness of domestic refineries.
The association’s National Publicity Secretary, Chinedu Ukadike, called for a transparent review of the policy by the Federal Government and the NMDPRA.
He said the import licences were originally expected to provide competition and serve as a check on domestic petrol prices, but claimed the policy had failed to deliver the expected results.
Nigeria Exports N546bn Worth of PMS
While Nigeria continues to import petrol, the latest NBS figures also show that the country exported a substantial volume of PMS during the second quarter.
Petrol exports increased from N452.48bn in Q1 to N546.02bn in Q2 2026, representing a rise of N93.54bn, or 20.67 per cent.
PMS exports accounted for approximately 2.02 per cent of Nigeria’s total N27.02tn exports during the quarter.
African countries accounted for a significant portion of the exported petrol.
The NBS reported that Nigeria exported N416.78bn worth of PMS to African markets, representing 6.26 per cent of the N6.65tn worth of goods exported to the continent.
Within West Africa, Nigeria exported PMS valued at N376.46bn, equivalent to 9.86 per cent of the country’s N3.82tn exports to the sub-region.
Overall, African markets accounted for about 76.3 per cent of Nigeria’s PMS exports, while West Africa alone represented nearly 69 per cent.
Dangote Says Nigeria Is Now a Net Fuel Exporter
Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets, organised by the NMDPRA in partnership with S&P Global Insights, Dangote Group President Aliko Dangote said Nigeria had become a net exporter of refined petroleum products.
Dangote disclosed that the refinery had exported about one million tonnes of PMS from the beginning of June to the time of his remarks, covering roughly 50 days.
However, the latest NBS trade figures present a different picture when measured by the monetary value of PMS imports and exports.
In Q2 2026, Nigeria imported N952.15bn worth of PMS but exported products valued at N546.02bn.
This resulted in a PMS trade deficit of approximately N406.12bn, meaning the value of imported petrol was about 74 per cent higher than the value of petrol exported during the quarter.
The figures have added another dimension to the ongoing debate over fuel imports, domestic refining capacity and the future structure of Nigeria’s downstream petroleum market.
Source: The PUNCH
