Nigeria halts petrol import licences, prioritises local gasoline supply

Nigeria has suspended the issuance of petrol import licences for a second consecutive month, as regulators move to enforce rules that restrict imports when domestic supply is sufficient.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show no licences were granted in February. The Crude Oil Refineries Association of Nigeria (CORAN) confirmed none had been issued in March either.

The Petroleum Industry Act (PIA) permits import licences only when local production falls short of national demand. Regulators say current domestic output meets that threshold — a finding that effectively bars importers from bringing in foreign fuel.

The decision marks a significant win for the Dangote Refinery. Last year, the refinery sued both the regulator and the state oil company to force a halt to imports, arguing that licences were undermining local refiners. In February alone, Dangote supplied 36.5 million litres of petrol and 8 million litres of diesel to the Nigerian market — volumes the regulator deemed sufficient to justify withholding import permits.

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The previous regulator, who resigned last year, had taken a different view, arguing that licences were necessary to maintain market competition and prevent dominance by a single player.

Fuel pump prices have surged more than 54 per cent since the US and Israeli strikes on Iran began last week, pushing global oil markets sharply higher. NMDPRA spokesperson George Ene-Ita attributed the spike directly to the conflict in the Middle East.

Nigeria’s average daily petrol consumption dropped to 56.9 million litres in February, down from 60.2 million litres in January.

CORAN spokesperson Eche Idoko welcomed the regulator’s stance. His association has long pushed the government to stop issuing import licences that eat into local refiners’ margins. “For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” he said.