Nigeria imported crude oil worth $3.74 billion in 2025 for processing at the Dangote Petroleum Refinery, signalling a structural shift in the country’s oil trade dynamics as domestic refining capacity expands.
This was disclosed in the Central Bank of Nigeria’s Balance of Payments report for 2025, which stated that “crude oil imports of $3.74 billion by Dangote Refinery” influenced movements in the country’s external position.
The development reflects a transition towards local refining of petroleum products, even as crude sourcing increasingly includes foreign supplies to sustain refinery operations.
What the report says
According to the report, Nigeria recorded a current account surplus of $14.04 billion in 2025, down from $19.03 billion in 2024 but above $6.42 billion in 2023.
The moderation was partly driven by a drop in crude oil export earnings, which declined by 14.41% to $31.54 billion in 2025 from $36.85 billion in 2024.
However, the goods account strengthened, posting a surplus of $14.51 billion in 2025 compared to $13.17 billion in the previous year, supported by improved trade performance.
Domestic refining played a key role in reducing fuel import dependence.
- The CBN noted that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Data shows that refined petroleum imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.88% year-on-year decline.
Despite this, non-oil imports increased by 13.60% to $29.24 billion, up from $25.74 billion in 2024, reflecting sustained demand for foreign goods.
Dangote exported $5.85 billion of refined petroleum products
The report highlighted a strong contribution from refined product exports, as the refinery began supplying international markets.
- According to the CBN, “significant export of refined petroleum products worth $5.85 billion by Dangote Refinery” supported Nigeria’s external balance and strengthened the goods account surplus.
In addition to refined products, gas exports to other economies also increased, further improving export earnings during the period.
However, pressures remained from rising external obligations. Net service outflows increased to $14.58 billion from $13.36 billion in 2024, driven by higher spending on transport, travel, and insurance services.
Similarly, net outflows under the primary income account rose sharply by 60.88% to $9.09 billion, largely due to higher dividend repatriation and interest payments to foreign investors.
Secondary income inflows declined slightly to $23.20 billion from $24.88 billion, reflecting weaker official transfers and diaspora inflows, although remittances remained a key source of support.
On the financial account, Nigeria recorded a net borrowing position of $1.69 billion in 2025, compared to a net lending position of $9.65 billion in 2024.
Portfolio investment inflows fell by 48.3% to $8.04 billion, while foreign direct investment increased to $4.01 billion from $1.61 billion, indicating a gradual shift towards more stable capital inflows.
The report also showed increased investment abroad by Nigerians, with both direct and portfolio investment assets rising during the year.
Overall, Nigeria’s balance of payments remained positive at $4.23 billion in 2025, though lower than the $6.83 billion recorded in 2024.
External reserves rose to $45.75 billion at the end of December 2025, representing a 13.83% increase year-on-year, supported by improved inflows and stronger external buffers.
