KEY POINTS
- NMDPRA resumes petrol and diesel import licences to close domestic refinery supply gaps.
- Dangote Refinery is undergoing expansion and cannot yet meet full national demand consistently.
- Importation serves as a stabilisation tool to prevent fuel shortages and price spikes while domestic output scales up.
Oil marketers have confirmed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has resumed issuing petrol and diesel import licences to prevent fuel shortages.
The move aims to close gaps caused by local refineries, including the Dangote Petroleum Refinery, which is currently undergoing expansion and cannot fully meet national demand.
Industry stakeholders explained that the decision is not intended to undermine the Dangote Refinery, which is expanding its capacity from 650,000 to 1.4 million barrels per day over the next three years.
The refinery is currently processing semi-finished feedstocks into refined products, leaving shortfalls in local supply that must be covered through imports.
Experts stressed that controlled importation is a strategic measure to ensure liquidity in the downstream market and maintain predictable supply. Ibrahim Gambo, a prominent oil marketer, noted, “The Federal Government’s resumption of import licences is a gap-management decision, not a reversal of the domestic refining policy. The downstream market must never be allowed to run dry.”
Fuel supply gaps highlight ongoing dependence on imports
The resumption of import licences underscores Nigeria’s continued reliance on foreign refined products despite investments in large-scale and modular refineries. While the Dangote Refinery maintains daily output of over 50 million litres of petrol, coastal logistics and import-related costs could raise pump prices by up to N1,000 per litre if passed on to consumers.
Marketers emphasised that domestic refineries cannot halt production due to downtime, maintenance, or crude supply constraints without risking nationwide fuel shortages. Importation therefore acts as a buffer to stabilise the market during periods when local output is insufficient.
Nigeria’s daily petrol consumption leaves little margin for supply disruption. NMDPRA’s import licensing aims to ensure immediate coverage of demand, preventing scarcity, price spikes, and supply disruptions while domestic refineries scale up operations.
Dangote Petroleum Refinery has clarified that it does not import finished petrol, diesel, or jet fuel, but only unfinished feedstocks requiring local processing. The refinery continues to operate at full capacity despite ongoing expansion work.
