
Nigeria has reportedly spent over N1.2 trillion on crude oil imports in recent months, as local production continues to falter due to operational challenges and infrastructural constraints in the oil sector.
Data obtained from the Nigerian National Petroleum Corporation (NNPC) indicate that the surge in imports is driven by shortfalls in crude output, which have fallen below government projections for the first half of 2025.
Industry experts attribute the decline in domestic production to factors including pipeline vandalism, aging oil fields, and delays in ongoing exploration projects.
“This heavy reliance on imported crude is unprecedented and underscores the urgent need to address structural issues within the country’s upstream sector,” said oil analyst Akin Oladipo.
The importation of crude, while providing temporary relief to refineries facing feedstock shortages, is exerting pressure on Nigeria’s foreign exchange reserves and increasing costs for downstream operators.
The Ministry of Petroleum Resources has pledged to fast-track initiatives aimed at boosting local production, including enhanced security measures and accelerated development of marginal fields.
Meanwhile, stakeholders warn that prolonged dependency on imports could undermine Nigeria’s status as Africa’s largest oil producer and complicate efforts toward energy self-sufficiency.
The government is expected to unveil a strategic roadmap in the coming weeks to stabilize crude output and reduce import dependency.