Dangote, Local Refiners Gain As FG Suspends Petrol Import Permits

The Federal Government of Nigeria has suspended the issuance of import licences for Premium Motor Spirit (PMS), popularly known as petrol or fuel, for the second consecutive month as regulators move to enforce provisions of the Petroleum Industry Act.

The development comes as authorities begin implementing the law’s requirement that petrol imports should only be allowed when domestic production falls short of national demand.

It was reported that data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that no petrol import licences were issued in February.

Similarly, the Crude Oil Refineries Association of Nigeria confirmed that no import permits had been granted so far in March.

The association disclosed this in comments to Reuters, indicating what industry observers describe as a deliberate policy shift by the government toward prioritising local refining capacity.

The decision is widely considered a boost for local refineries, particularly the Dangote Refinery, and other emerging refining projects in the country.

Last year, the Dangote Refinery and other local refiners had taken legal action against the regulator and the state oil company, Nigerian National Petroleum Company Limited, seeking to halt petrol imports, which they argued were undermining local refining investments.

Under the Petroleum Industry Act, the industry regulator is empowered to issue petrol import permits only when domestic production is insufficient to meet the country’s consumption needs.

Before now, stakeholders had argued that allowing imports was necessary to maintain market competition and prevent the emergence of monopolies in the downstream sector.

However, the latest move indicates a renewed emphasis on encouraging local production.

Meanwhile, fuel pump prices have surged by more than 54 per cent since the United States and Israel launched strikes on Iran last week, a development that has rattled global oil markets.

The spokesperson for the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene‑Ita, attributed the sharp increase in prices to the escalating conflict in the Middle East.

Industry data also showed a decline in Nigeria’s petrol consumption.

Average daily consumption dropped to 56.9 million litres per day in February 2026, compared to 60.2 million litres recorded in January.

In the same month, the Dangote Refinery supplied about 36.5 million litres of petrol and eight million litres of diesel to the local market.

According to the regulator, these volumes were adequate to support domestic supply, which informed its decision to withhold import licences.

Reacting to the development, the spokesperson for the Crude Oil Refineries Association of Nigeria, Eche Idoko, described the regulator’s stance as a positive step for the local refining industry.

The association has repeatedly urged the government to stop issuing petrol import licences, arguing that the practice erodes the profit margins of domestic refiners.

“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” Idoko said.