Nigeria spent $1.39bn on foreign crude in Q1, says report

Nigeria imported crude oil worth $1.39bn in the first quarter of 2026, just as the Dangote Petroleum Refinery increasingly source feedstock from international markets 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 the first quarter of 2026 showed that crude oil imports rose from $340m in the fourth quarter of 2025 to $1.39bn in Q1 2026, representing a 308.82 per cent quarter-on-quarter increase.

The development comes amid the rapid expansion of local refining capacity, particularly at the Dangote refinery, which has continued to increase production volumes and exports of refined petroleum products.

The refinery has also been supplementing domestic crude supplies with imported grades.

According to the report, crude oil imports accounted for about 81.8 per cent of the country’s total imports of crude oil, gas and refined petroleum products, which stood at $1.70bn during the review period.

The figure highlights the growing dependence of Dangote on imported crude despite ongoing efforts by regulators to improve domestic crude supply arrangements.

The increase in crude imports contrasted with a collapse in refined petroleum product imports, which fell by 87.5 per cent to $310m in Q1 2026 from $2.48bn in the preceding quarter.

The sharp decline reflects the increasing substitution of imported fuel with locally refined products as domestic refining capacity expands.

According to the apex bank, the decline in fuel imports was one of the key 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 read.

The reduction in fuel imports coincided with a rise in exports of refined petroleum products, which increased by 20.3 per cent to $2.37bn in Q1 2026 from $1.97bn in the previous quarter.

This trend suggests that the country is gradually transitioning from a net importer of refined petroleum products towards becoming a significant exporter, driven largely by the output of the Dangote refinery and other domestic refining facilities.

The CBN noted that the country’s goods account surplus rose significantly to $5.95bn in the first quarter of 2026 from $1.77bn in the preceding quarter and $3.35bn 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 read.

The stronger trade position was also supported by higher crude oil exports.

Earnings from crude oil exports rose by 19.79 per cent to $8.11bn from $6.77bn in the previous quarter, while gas exports increased by 12.95 per cent to $2.53bn from $2.24bn. Refined petroleum product exports also climbed to $2.37bn from $1.97bn.

Overall exports increased to $15.49bn during the quarter from $13.36bn in Q4 2025, while total imports declined by 17.69 per cent to $9.54bn from $11.59bn.

The improvement in trade flows helped lift Nigeria’s current account surplus to $4.98bn in Q1 2026, compared with $1.40bn in the preceding quarter and $3.41bn in the corresponding period of 2025. The latest figure represents a 255.71 per cent increase from the previous quarter and a 46.04 per cent 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 $2.38bn in the first quarter, compared with $2.67bn in Q4 2025.

However, the country’s external reserves increased to $48.35bn at the end of March 2026 from $45.75bn at the end of December 2025, reflecting continued foreign exchange inflows and improved external sector conditions.

The PUNCH earlier reported that local refineries in Nigeria received only 28.5 million barrels of crude oil in the first quarter of 2026, despite higher volumes offered by producers under the Domestic Crude Supply Obligation framework, according to data from the Nigerian Upstream Petroleum Regulatory Commission.

Figures released by the Commission indicated that while 61.9 million barrels were allocated to domestic refiners during the period, oil producers collectively offered 68.7 million barrels. However, actual deliveries lagged significantly, with refiners lifting just 28.5 million barrels, representing a supply conversion rate of between 36 and 46 per cent.

The development showed a persistent gap between crude availability and actual refinery intake, raising fresh concerns over feedstock adequacy for Nigeria’s refining ambitions.

Despite the supply gaps, the Commission reaffirmed its commitment to improving crude availability for local refining as part of the Federal Government’s energy security drive.

The Crude Oil Refiners Association of Nigeria has attributed the growing reliance of the Dangote Petroleum Refinery on imported crude to commercial pricing structures and crude grade differentials in the domestic market.