Nigeria’s expenditure on the importation of Premium Motor Spirit (PMS), commonly known as petrol, dropped by more than 96 per cent in the first quarter of 2026, highlighting the growing influence of local refining capacity on the nation’s fuel supply chain.
According to the latest foreign trade statistics released by the National Bureau of Statistics (NBS), the country spent N87.401 billion on the importation of Motor Spirit Ordinary—the official trade classification for petrol—between January and March 2026.
The figure represents a significant decline from the N2.271 trillion spent on petrol imports during the same period in 2025.
In monetary terms, Nigeria’s petrol import bill fell by approximately N2.184 trillion year-on-year, translating to a 96.15 per cent reduction.
The sharp decline marks one of the most dramatic shifts in Nigeria’s downstream petroleum sector in recent years and signals a growing reliance on locally refined fuel products.
For decades, petrol imports accounted for a substantial portion of Nigeria’s import expenditure despite the country’s status as one of Africa’s largest crude oil producers.
The latest data, however, suggests that the landscape is changing rapidly as domestic refining capacity expands.
One of the most notable indicators of this transition is that petrol no longer appeared among Nigeria’s top imported commodities during the first quarter of 2026.
Historically, PMS consistently ranked among the country’s highest-value imported products, often placing significant pressure on foreign exchange reserves and government finances.
Industry analysts say the reduction in imports reflects increased output from local refineries and ongoing efforts to reduce dependence on foreign fuel supplies.
The development is expected to have wider economic implications, including lower demand for foreign exchange, improved energy security, and potential savings on import-related costs.
It may also strengthen Nigeria’s balance of trade by reducing the volume of refined petroleum products purchased from international markets.
The decline comes amid continued reforms in the oil and gas sector aimed at boosting domestic refining and ensuring greater self-sufficiency in fuel production.
Stakeholders believe that sustained growth in local refining capacity could further reduce import dependence and transform Nigeria into a net exporter of refined petroleum products in the coming years.
While challenges remain within the energy sector, the latest figures suggest that Nigeria is making significant progress toward achieving greater fuel independence and reducing the economic burden associated with petrol imports.
