Nigeria's Crude Oil Import Surges Despite Export Dominance

In the first quarter of 2026, Nigeria imported crude oil valued at $1.6 billion, despite being the largest exporter of crude oil in Africa. This paradox is attributed to the operations of the Dangote Refinery, which has a processing capacity of 700,000 barrels per day.

The refinery's reliance on imported crude oil has raised concerns, as it exports refined petroleum products to various regions, including South Korea, while simultaneously importing crude oil. The World Bank has criticized the Nigerian government for allowing Dangote Refinery to maintain a monopoly, which has resulted in high petrol prices for consumers, currently at N153 per liter.

The government is under pressure to issue licenses for petrol imports to foster competition and reduce prices. Additionally, Nigeria is experiencing a scarcity of cooking gas, with prices rising due to gas flaring issues in oil fields, which the government has struggled to regulate effectively.