Nigeria imported crude oil worth $1.39 billion in the first quarter of 2026, underscoring the growing reliance of domestic refiners on foreign feedstock despite the country’s status as Africa’s largest crude oil producer.
Data obtained from the Central Bank of Nigeria’s Balance of Payments Highlights for Q1 2026 showed that crude oil imports rose from $340 million in the fourth quarter of 2025 to $1.39 billion in the review period, representing a 308.82% quarter-on-quarter increase.
The sharp rise comes amid continued expansion of local refining operations, particularly at Dangote Petroleum Refinery, which has increasingly sourced crude from international markets to support production and exports while supplementing domestic supplies.
The development also comes against the backdrop of persistent concerns over crude oil availability for local refiners. Earlier data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that domestic refineries received only 28.5 million barrels of crude oil during the first quarter of 2026 despite significantly higher volumes being allocated under the Domestic Crude Supply Obligation framework.
According to the commission, 61.9 million barrels were allocated to domestic refiners during the period, while oil producers offered a total of 68.7 million barrels. However, actual deliveries stood at 28.5 million barrels, translating to a supply conversion rate of between 36% and 46%.
The figures highlighted a persistent gap between crude availability and actual refinery intake, raising concerns about feedstock adequacy for Nigeria’s refining ambitions.
Despite the supply gaps, the NUPRC reaffirmed its commitment to improving crude availability for domestic refining as part of the Federal Government’s energy security drive.
Industry stakeholders have linked the increasing use of imported crude by local refiners, particularly Dangote Petroleum Refinery, to commercial considerations, including pricing structures and crude grade preferences.
Speaking in a recent interview with The PUNCH, the Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Eche Idoko, said the refinery’s preference for imported crude is largely driven by economics and product compatibility rather than a lack of demand for local supply.
He explained that Nigerian producers predominantly sell Brent-linked crude at a premium, while the refinery often imports West Texas Intermediate (WTI) crude, which better aligns with its operational configuration.
Idoko said, “So one of the major issues we are having with Dangote buying more crude from the U.S. is because of the type of products offered and the pricing. It is based on commercials. So producers sell more Brent crude at a premium, but the import from other countries is WTI, another grade that is utilised by the refinery.”
He argued that the existing pricing framework places domestic refiners at a disadvantage compared to international sourcing options, particularly in terms of competitiveness and risk exposure.
According to him, a more tailored pricing mechanism is needed to reflect Nigeria’s refining realities, strengthen local supply chains and reduce the growing dependence on imported feedstock.
The CBN data showed that crude oil imports accounted for approximately 81.8% of Nigeria’s total imports of crude oil, gas and refined petroleum products, which stood at $1.70 billion during the review period.
While crude imports surged, imports of refined petroleum products recorded a dramatic decline. According to the apex bank, fuel imports fell by 87.5% to $310 million in Q1 2026 from $2.48 billion in the preceding quarter.
The sharp reduction reflects the increasing substitution of imported fuel with locally refined products as domestic refining capacity expands.
The CBN noted that lower fuel imports were among the factors that strengthened Nigeria’s external position during the quarter.
“Refined petroleum products imports declined to $0.31bn in Q1 2026, from $2.48bn in Q4 2025,” the report stated.
At the same time, exports of refined petroleum products continued to rise. The report showed that refined product exports increased by 20.3% to $2.37 billion in Q1 2026 from $1.97 billion in the previous quarter.
The trend suggests that Nigeria is gradually transitioning from a net importer of refined petroleum products to becoming a significant exporter, driven largely by output from Dangote Petroleum Refinery and other domestic refining facilities.
The improved performance in the petroleum sector contributed to stronger trade flows during the quarter.
According to the CBN, the country’s goods account surplus rose significantly to $5.95 billion in Q1 2026 from $1.77 billion in the preceding quarter and $3.35 billion in the corresponding period of 2025.
“The goods account (a major sub-account in the current account) recorded a significantly higher surplus of $5.95bn in Q1 2026, as against $1.77bn and $3.35bn recorded in the preceding quarter and corresponding period of 2025,” the report stated.
The stronger trade position was also supported by higher crude oil exports.
Crude oil export earnings increased by 19.79% to $8.11 billion from $6.77 billion in the previous quarter, while gas exports rose by 12.95% to $2.53 billion from $2.24 billion. Refined petroleum product exports also climbed to $2.37 billion from $1.97 billion.
Overall exports increased to $15.49 billion during the quarter from $13.36 billion in Q4 2025, while total imports declined by 17.69% to $9.54 billion from $11.59 billion.
The improvement in trade flows helped lift Nigeria’s current account surplus to $4.98 billion in Q1 2026, compared with $1.40 billion in the preceding quarter and $3.41 billion in the corresponding period of 2025.
The latest figure represents a 255.71% increase from the previous quarter and a 46.04% rise year-on-year.
According to the CBN, the higher current account surplus was driven by increased earnings from crude oil, gas, and refined petroleum exports, lower imports of refined petroleum products, and a reduction in net out-payments on the primary income account.
The report stated, “Provisional balance of payments statistics for Q1 2026 show a current account surplus of $4.98bn, which was higher than the $1.40bn and $3.41bn recorded in the preceding quarter and corresponding period, respectively.”
Despite the stronger current account performance, Nigeria recorded a lower overall balance of payments surplus of $2.38 billion in the first quarter, compared with $2.67 billion in Q4 2025.
However, the country’s external reserves increased to $48.35 billion at the end of March 2026 from $45.75 billion at the end of December 2025, reflecting continued foreign exchange inflows and improved external sector conditions.