The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to issue petrol import licences based on published merit-based criteria and verifiable domestic supply shortfalls, as local refineries increase their contribution to Nigeria’s fuel market.
The Authority Chief Executive, Rabiu Umar, disclosed this while delivering the keynote address at the 2026 OTL Africa Downstream Energy Week in Lagos, themed “Secure Energy, Shared Prosperity.”
Umar said import licences would remain available to eligible operators, but approvals would be guided by transparent assessments of actual supply gaps rather than discretionary decisions.
“For our importers, the door stays open. Import licences will be issued only on the basis of published merit-based criteria and also a transparent shortfall determination that everybody can audit,” he said.
The proposed approach is intended to provide greater clarity for fuel importers while ensuring that imported products complement domestic production and help meet demand when local supplies are insufficient.
It also signals a shift towards a more transparent licensing framework as Nigeria’s downstream petroleum market adjusts to the growing role of domestic refineries.
Domestic refineries take larger share of petrol supply
According to the supplied report, domestic refineries now account for about 75 per cent of petrol supplied to the Nigerian market, while imports have fallen by more than half over the past year.
The changing supply mix reflects efforts to increase domestic refining and reduce reliance on imported petroleum products.
However, the growing contribution of local refineries does not eliminate the need for imports where domestic production falls short of national consumption or where supply disruptions occur.
The regulator’s proposed framework would therefore make the assessment of supply shortfalls a central factor in determining whether additional imports are required.
For marketers and importers, published criteria and auditable assessments could provide greater predictability in planning shipments and securing financing. For consumers, the ultimate test will be whether the framework supports adequate supply and competitive market conditions.
Transparency and competition in focus
A merit-based licensing system could also help reduce uncertainty over access to import licences, provided the criteria are consistently applied and the data used to determine shortfalls are reliable.
The policy will require credible information on domestic refinery output, product inventories, distribution capacity and national demand to determine when imports are necessary.
It will also need to balance the interests of domestic refiners, importers, marketers and consumers while avoiding supply gaps that could trigger scarcity or price volatility.
The NMDPRA’s announcement comes as Nigeria seeks to strengthen its domestic petroleum value chain and improve energy security through increased local refining.
The effectiveness of the new conditions will depend on their implementation, the transparency of licensing decisions and the regulator’s ability to respond promptly when domestic production cannot meet market requirements.
