CBN releases $1.26bn to oil sector players for fuel imports in Q1 2025 as marketers compete with Dangote Refinery over pricing and supply

The Central Bank of Nigeria (CBN) has released a total of $1.259bn to oil sector players for the importation of petroleum products and related items within the first quarter of 2025.

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The forex allocation comes amid growing competition between fuel importers and the Dangote Petroleum Refinery, which has been ramping up local production and exports.

According to new data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), marketers accounted for about 69 per cent of the 21 billion litres of petrol consumed in Nigeria between August 2024 and early October 2025.

Despite the refinery’s capacity to meet local demand, importation has continued, albeit at a reduced level. Between January and March 2025, a total of 2.28 billion litres of petrol were imported one of the lowest quarterly figures in recent years, reflecting a gradual shift toward local refining.

A breakdown of the CBN’s Quarterly Statistical Bulletin shows that:

$457.83m was disbursed in January, representing 36.2% of the total;

$283.54m in February, accounting for 22.5%; and

$517.55m in March, the largest monthly share at 41.3%.

NMDPRA data further indicated that imports stood at 724.5 million litres in January, 760 million litres in February, and 803.7 million litres in March.

The competition between the Dangote Refinery and independent marketers has intensified as both sides vie for market dominance.

Despite local availability, many marketers prefer imports based on cost advantages.

The National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said pricing remains the main determinant of sourcing decisions.

“Marketers will always buy from the most affordable source because our margins are very thin. If imported products are cheaper, we’ll import. But if Dangote offers better prices, we’ll buy locally,” Ukadike said.

He added that the price gap between local and imported fuel fluctuates based on global oil prices, exchange rates, and government policies.

Meanwhile, the Major Energies Marketers Association of Nigeria (MEMAN) revealed in its latest Energy Bulletin that the import parity price of petrol has dropped to ₦805.46 per litre, driven by declining global oil prices and naira volatility.

Also read: CBN survey shows taxes, interest rates hurting firms

As the CBN continues to support the oil sector with forex allocations, industry experts say the next few months will determine whether Nigeria can achieve a sustainable balance between local refining capacity and import dependence.