Petrol import bill drops from N2.3tn to under N90bn – FG

Nigeria is now refining the majority of its petrol domestically for the first time in a generation, a significant shift that has drastically cut import bills and eased pressure on the national currency. Local petrol production has risen from near zero in 2023 to about 48 million liters per day.

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For decades, every cargo of imported petrol was a standing demand for scarce dollars, a structural drain that weakened our currency.

This achievement has led to a dramatic reduction in petrol imports, which fell from approximately N2.3 trillion in the first quarter of 2025 to under N90 billion a year later. Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, stated that "fewer dollars spent on fuel means less pressure on the Naira." She emphasized that energy security and currency stability are intrinsically linked goals.

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As local refining has risen, that drain has eased: petrol imports fell from about N2.3 trillion in the first quarter of 2025 to under N90 billion a year later.

Verheijen also reported a restoration of investor confidence in the crude oil and condensate sector. Production averaged 1.64 million barrels per day in 2025, marking a 400,000 barrels per day increase since 2023 and the highest onshore production level in two decades. Over $4 billion in international oil company divestments have been concluded, deepening indigenous participation while majors focus on deep-water assets.

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Energy security and currency stability are not separate goals. They are the same goal.

Reflecting on the state of the sector in 2023, Verheijen described it as being under severe strain, with unsustainable subsidies and foreign-exchange distortions hindering investment. The administration's initial tasks involved stopping the financial bleeding and rebuilding foundational elements by removing the fuel subsidy and reforming the exchange rate. These difficult but necessary decisions have led to a near doubling of total federation revenue, from roughly N12 trillion in 2023 to about N21 trillion in 2024.

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Every additional barrel matters, for revenue, for jobs, and for the strength of the federation.