The Federal Government has halted the issuance of petrol import licences for a second consecutive month, a move that has effectively prioritised domestic refinery production, and allowed the Ɗangote Refinery to dominate fuel supply in Nigeria.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that no petrol import licences were issued in February, while the Crude Oil Refineries Association of Nigeria (CORAN) confirmed that none have been granted so far in March.
Under the provisions of the Petroleum Industry Act (PIA), import licences can only be issued when local refining capacity is insufficient to meet national demand. Regulators say current domestic production meets that requirement, effectively restricting the importation of foreign fuel.
The policy shift has significantly boosted the role of the Ɗangote Refinery, which supplied about 36.5 million litres of petrol daily in February, accounting for roughly 92% of Nigeria’s fuel supply during the period. Imports fell sharply to about 3 million litres per day, according to industry figures. In addition to petrol, the refinery also delivered around 8 million litres of diesel to the domestic market in February, volumes regulators said were sufficient to justify the continued pause on import permits.
The development marks a major victory for the refinery, which last year initiated legal action against regulators and the national oil company, arguing that the continued issuance of import licences undermined local refining investments.
However, the stance contrasts with that of the previous NMDPRA leadership, which had defended the issuance of licences on the grounds that imports were necessary to maintain competition in the downstream sector and prevent market dominance by a single supplier.
Despite the increase in domestic supply, fuel prices remain elevated. Although the Ɗangote Refinery recently reduced its gantry price by about ₦100, petrol pump prices across the country still hover above ₦1,200 per litre.
Market pressures have also been aggravated by developments in the global oil market. Fuel prices have surged by more than 54% following recent military strikes by the United States and Israel on Iran, which have rattled global energy markets. Spokesperson for the NMDPRA, George Ene-Ita, attributed the spike partly to the escalating tensions in the Middle-East.
Meanwhile, Nigeria’s average daily petrol consumption declined to 56.9 million litres in February, down from 60.2 million litres in January, according to regulatory data.
Reacting to the development, CORAN spokesperson Eche Idoko welcomed the suspension of import licences, describing it as a necessary step to protect local refiners and strengthen domestic production.
“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum”, he said.
