KEY POINTS
- FG halts petrol import licences for the second straight month as domestic refining capacity improves.
- Local refineries, especially Dangote, are now supplying a large share of Nigeria’s fuel demand.
- Regulators say imports will only resume if local production becomes insufficient under the Petroleum Industry Act.
The Federal Government has suspended the issuance of import licences for Premium Motor Spirit (PMS), commonly known as petrol, for the second consecutive month, signalling a significant shift in Nigeria’s fuel supply strategy towards prioritising domestic refining.
The development comes as regulators intensify the implementation of provisions within the Petrol Industry Act (PIA), which stipulate that petrol imports should only be permitted when local production is insufficient to meet national demand.
Recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that no petrol import licences were issued in February 2026. This trend has continued into March, according to the Crude Oil Refineries Association of Nigeria (CORAN), marking a deliberate move by the government to rely more heavily on local refineries.
Dangote refinery and local producers benefit
Industry stakeholders say the move is a significant boost for domestic refiners, particularly the Dangote Refinery and other emerging refining facilities in the country.
The refinery and other local producers had previously expressed concerns over continued petrol imports, arguing that such practices undermine local refining capacity and profitability. In 2025, Dangote Refinery initiated legal action against the NMDPRA and the Nigerian National Petroleum Company (NNPC) Limited, seeking to halt fuel imports and ensure priority for locally refined products.
The decision to suspend import licences is therefore viewed as a major victory for domestic refining operators, as it aligns with their long-standing demand for protection of local production.
Under the Petroleum Industry Act, the NMDPRA is empowered to issue import licences only when domestic production cannot adequately meet the country’s consumption needs.
Previously, authorities had defended the issuance of import permits as necessary to encourage market competition and prevent a single supplier from dominating the sector. However, the current policy shift suggests that regulators believe local production is now sufficient to supply the Nigerian market.
The development also comes against the backdrop of rising global oil prices triggered by escalating geopolitical tensions in the Middle East. Petrol prices have reportedly surged by more than 54 percent following recent military strikes involving the United States and Israel against Iran, which have heightened volatility in global energy markets.
According to NMDPRA spokesperson George Ene-Ita, the conflict in the region has contributed significantly to the sharp increase in fuel prices worldwide.
