Nigeria has been facing tough economic challenges, but the Dangote Refinery has become a major source of relief by cutting the country’s fuel import bill by more than ₦10 billion every year.
This information was shared by Sunday Esan, Senior General Manager of Corporate Communications at Dangote Industries, during the 2025 Media Week of the Nigeria Union of Journalists (NUJ) in Lagos.
The event, themed “Unlocking Opportunities for Businesses in a Challenging Economy: The Role of the Media/Roadmaps to Energy Security in Nigeria,” highlighted how the refinery has strengthened Nigeria’s energy independence almost two years after it began full operations.
Esan explained that the refinery has significantly reduced what Nigeria spends on fuel imports. Fuel import costs dropped from $2.6 billion in the first quarter of 2024 to $1.2 billion in the same period of 2025. This 54 percent reduction is directly tied to local refining.
There are also plans to expand the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day. This expansion is drawing global buyers, including Saudi Aramco and American companies interested in jet fuel.
With debates around energy security continuing, Esan encouraged the media to visit the refinery to better understand what he called a “national asset” and to counter misinformation.
Turning From Imports To Local Refining
Before the refinery began operating fully in early 2024, Nigeria relied heavily on imported petrol and diesel, even though it is one of the world’s major crude oil producers.
The country imported nearly 90 percent of its refined fuel, which drained foreign exchange, weakened the naira, and caused recurring fuel scarcity.
There were long queues, panic buying, and regular disruptions. In 2023, imports from Malta alone rose sharply to more than $2.1 billion after years of almost no imports from that route, amid concerns that some of the imported fuel was of poor quality.
Since the refinery began producing at scale, the situation has changed dramatically. By mid-2025, petrol imports had fallen by 54 percent compared to the previous year, and seaborne clean product imports dropped 39 percent within the first seven months.
Nigeria now has a stable local supply chain, producing more than 45 million liters of petrol and 25 million liters of diesel every day, which is more than enough to meet national demand.
As a result, the country has cut its annual import bill by as much as $3.8 billion and is now in a position to become a net exporter of fuel, something that has not happened in decades.
How Nigeria Is Able To Save
The savings come from replacing imported fuel with locally refined products. The 650,000 barrels-per-day facility refines Nigerian crude into petrol, diesel, and jet fuel, reducing the need for imports that previously consumed as much as 40 percent of Nigeria’s foreign reserves. In just the first quarter of 2025, this shift led to a $1.4 billion reduction in spending on imported fuel.
Several factors support these savings, including the refinery’s highly efficient single-train design, its fleet of 4,000 compressed natural gas trucks for distribution, and strategic price reductions such as a ₦30 per liter fuel price cut in August 2025.
As production moves toward 700,000 barrels per day by the end of the year, these savings will continue to grow. Experts like Jide Pratt from TradeGrid point out that although maintenance downtime can pose temporary risks, the overall impact is reduced dependence on imports and less pressure on foreign exchange.
Countries Nigeria used to Import From
Nigeria’s fuel imports have traditionally come from a wide range of countries, especially in Europe. Malta was the largest source in 2023 with over $2.1 billion worth of shipments, followed by the Netherlands and Belgium, which act as major entry points for refined products coming from the Middle East and Asia.
Other import sources included the United States and some West African countries like Ghana, though in smaller amounts. This complex network added to transparency problems and put significant pressure on Nigeria’s foreign exchange.
Malta alone exported $818 million worth of petrol to Nigeria in 2024 before exports dropped sharply by 60 percent.
The situation is now changing. Instead of relying heavily on imports, Nigeria is beginning to export refined products from the Dangote Refinery.
In 2025, gasoline shipments went to the United States, Oman, Singapore, and Malaysia, totaling around 90,000 barrels per day in June.
Countries in West and Central Africa, including Ghana, now buy diesel and jet fuel from Nigeria. The refinery has also met European standards, opening additional export markets.
Interest from companies such as Saudi Aramco reflects the high quality of its products. Between June and July, more than one million tons of premium motor spirit were exported within the region.
These exports help Nigeria earn foreign exchange and shift from being a long-time buyer to a supplier in the international market.
Impact on Nigeria’s Economy
The effects of the Dangote Refinery extend far beyond fuel savings. By preventing the loss of more than ₦10 billion each year, the refinery helps stabilize the naira and supports the economy during a period of high inflation.
This saved amount could fund thousands of schools, hospitals, or development projects. The reduced demand for dollars has supported exchange rate stability and contributed to improved GDP growth forecasts, rising from 3.34 percent to 4.13 percent by 2030.
The refinery has also generated thousands of jobs. The fleet of CNG trucks alone employs 24,000 people, while refinery operations create jobs in engineering, logistics, manufacturing, and fuel retailing.
Energy security has improved significantly, ending frequent fuel shortages and protecting Nigeria from global supply disruptions. According to OPEC’s January 2025 report, Nigeria’s import dependence has dropped sharply. Maritime exports grew 12 percent to ₦42.87 trillion in the first half of 2025, helped by refined product shipments. Local refining has also pushed companies like Oando and TotalEnergies to adjust their strategies to the new reality.
Long-term projects, including the recent Honeywell partnership to expand capacity, promise cheaper fuel, more investment, and stronger industrial growth.
Esan described the refinery as a national landmark that is boosting growth, creating jobs, and establishing Nigeria as a major energy player in the region.
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