Keypoints:
- Nigeria halts petrol import licences for second month
- Regulators enforce Petroleum Industry Act supply rule
- Dangote Refinery output reshaping fuel market
NIGERIA has halted the issuance of petrol import licences for a second consecutive month as regulators begin enforcing provisions of the Petroleum Industry Act (PIA) that allow fuel imports only when domestic supply cannot meet national demand.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that no import permits were issued in February, while industry officials say none has been granted so far in March, signalling a clear policy shift toward prioritising domestic refining capacity.
Petroleum Industry Act begins shaping fuel policy
The Petroleum Industry Act — Nigeria’s sweeping oil sector reform law — allows regulators to approve petrol imports only when domestic refining capacity cannot meet demand.
Officials say current supply levels from local refineries have been sufficient, allowing regulators to suspend new permits under the law.
Nigeria’s average petrol consumption fell to about 56.9 million litres per day in February 2026, down from roughly 60.2 million litres in January, according to regulatory figures.
Energy analysts say the decision reflects growing confidence that Nigeria’s refining industry — led by the massive Dangote Refinery — can increasingly replace imported fuel.
The policy shift follows months of tension between regulators and local refiners over whether continued imports undermine domestic investment. The dispute intensified after refinery operators argued that cheap imports threatened local production and jobs.
For context, Africa Briefing previously reported how fuel imports were criticised by Dangote as undermining domestic refining.
Dangote refinery reshapes market dynamics
A major factor behind the import halt is rising output from the Dangote Refinery, the continent’s largest oil processing facility.
According to the NMDPRA, the refinery supplied around 36.5 million litres of petrol to Nigeria’s domestic market in February, alongside roughly 8 million litres of diesel.
Regulators determined that these volumes — together with supply from smaller local refineries — were sufficient to meet national demand, removing the need for import licences.
The $20bn refinery, with a capacity of about 650,000 barrels per day, is widely viewed as capable of transforming Nigeria’s downstream petroleum industry and sharply reducing the country’s dependence on imported fuel.
As production ramps up, the refinery is also beginning to influence regional energy markets. Africa Briefing recently reported how the facility is emerging as a regional energy hub supplying refined fuel across Africa.
Legal battle over petrol imports
The issue of petrol imports has long been contentious in Nigeria’s energy sector.
Last year the Dangote refinery filed legal action against regulators and the state oil company, arguing that ongoing fuel import licences violated legal provisions that allow imports only when domestic supply falls short.
The refinery said continued imports were eroding local refining margins and discouraging investment in domestic processing capacity.
Regulators at the time defended the policy, saying imports were needed to maintain competition and prevent the market from being dominated by a single refinery.
However, the latest regulatory stance suggests authorities are now placing stronger emphasis on protecting domestic production and enforcing the provisions of the Petroleum Industry Act.
Local refiners welcome the move
Nigeria’s domestic refining industry has welcomed the suspension of new import licences.
Eche Idoko, spokesperson for the Crude Oil Refineries Association of Nigeria (CORAN), said the regulator’s decision represents a positive step for local producers.
‘For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,’ Idoko said.
Industry groups have long argued that large volumes of imported petrol weaken the economics of domestic refining projects and slow the development of Nigeria’s downstream energy sector.
Global tensions push fuel prices higher
The policy shift comes as global oil markets react to escalating geopolitical tensions in the Middle East.
Petrol pump prices in Nigeria have surged by more than 54 percent since the United States and Israel launched strikes on Iran last week, pushing international crude prices higher.
NMDPRA spokesperson George Ene-Ita said the rise in pump prices reflects global market pressures rather than domestic regulatory policy.
Outlook for Nigeria’s fuel market
Energy analysts say the durability of Nigeria’s no-import stance will depend on whether domestic refineries can consistently meet demand.
If local production continues to expand, Nigeria could reduce its reliance on imported petrol for the first time in decades — a shift that could save billions of dollars in foreign exchange previously spent on fuel imports.
For now, regulators say imports will only resume if domestic supply falls below national demand, in line with the Petroleum Industry Act.
