Nigeria Cuts Petrol Import Bill by 96 Percent

Special Adviser to the President on Oil and Gas Olu Arowolo Verheijen announced that Nigeria's petrol import bill fell from approximately N2.3 trillion in the first quarter of 2025 to below N90 billion in the first quarter of 2026. Speaking at the Nigeria-British Chamber of Commerce Energy Day, Verheijen attributed the 96 percent decline to a structural shift toward domestic refining, with local production increasing from nearly zero in 2023 to 48 million litres per day.

This transition reduced foreign exchange demand and contributed to a N7.54 trillion trade surplus in the first quarter of 2026. Verheijen also noted broader reforms, including the removal of fuel subsidies and a N4 trillion bond facility designed to settle power sector arrears and restore investor confidence.

Retail effects materialized as Dangote Petroleum Refinery & Petrochemicals Fze lowered its gantry price to N1,175 per litre, citing falling global crude benchmarks. While several filling stations in Abuja reduced pump prices to between N1,241 and N1,300 per litre, the Nigerian National Petroleum Company Limited maintained its rate at N1,335 per litre. These pricing shifts follow a period of instability linked to the Iran-United States-Israel conflict, with a recent Iranian closure of the Strait of Hormuz causing a slight surge in oil prices as of June 21, 2026.