Politics
Petrol Imports Fall by Over 96% as Domestic Production Hits 48m Litres Per Day – THISAGE
By Ayo Kehinde
Nigeria’s petrol import bill has plunged by more than 96 per cent, falling from about N2.3 trillion in the first quarter of 2025 to less than N90 billion a year later, as domestic petrol production rose from virtually zero in 2023 to about 48 million litres per day, the Federal Government has disclosed.
The Special Adviser to the President on Energy, Olu Verheijen, made the disclosure at the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos.
Speaking on the theme, “Energy in Nigeria: From Potential to Reality,” Verheijen said the increase in local refining capacity had transformed Nigeria’s petroleum supply landscape, with most of the petrol consumed in the country now refined locally for the first time in decades.
According to her, the shift has significantly reduced dependence on imported fuel and eased pressure on foreign exchange demand.
“For the first time in a generation, the majority of the petrol Nigerians consume is now refined at home. This is where energy reform meets the strength of the Naira. For decades, every cargo of imported petrol was a standing demand for scarce dollars, a structural drain that weakened our currency.
“As local refining has risen, that drain has eased. Fewer dollars spent on fuel means less pressure on the Naira. Energy security and currency stability are not separate goals. They are the same goal,” she said.
Verheijen said the gains recorded in the downstream petroleum sector were complemented by improvements in crude oil and condensate production, which she attributed to renewed investor confidence and reforms implemented by the administration.
She disclosed that crude oil and condensate production averaged 1.64 million barrels per day in 2025, representing an increase of roughly 400,000 barrels per day compared to production levels recorded in 2023.
The presidential aide noted that the figure marked the highest onshore crude production level in nearly two decades.
She further revealed that more than $4 billion worth of international oil company divestments had been successfully concluded, deepening indigenous participation in onshore operations while multinational operators shifted focus to deep-water projects and integrated gas development.
According to her, improvements in pipeline security and operational efficiency have also contributed to increased output.
“Pipeline uptime is now consistently high, and illegal refining has been sharply reduced.
“Every additional barrel matters — for revenue, for jobs, and for the strength of the federation,” she said.
Reflecting on the condition of the energy sector when the current administration assumed office in 2023, Verheijen said the industry was grappling with severe structural challenges, including an unsustainable fuel subsidy regime, foreign exchange distortions, weak investment flows and mounting debts in the power sector.
She noted that crude oil production remained below potential, while debts across the electricity value chain constrained gas supply to power generation companies.
“The country had resources, but the system was not converting them into national value. So our first task was to stop the bleeding and rebuild the foundations,” she said.
Verheijen recalled that President Bola Ahmed Tinubu’s administration took what she described as difficult but necessary decisions by removing fuel subsidies and implementing foreign exchange reforms aimed at restoring fiscal credibility and attracting investment.
She said the reforms had produced measurable gains for government finances.
“The results are visible. Total federation revenue rose to about N21 trillion in 2024, up from roughly N12 trillion in 2023 — nearly doubling in a single year,” she stated.
She added that despite the deregulation of the downstream petroleum sector, the government had largely succeeded in preventing the widespread fuel shortages and long petrol queues that previously characterised supply disruptions across the country.
Post Views:
14
