NMDPRA Sets Fresh Conditions for Petrol Import Licences as Local Refining Hits 75%

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will issue petrol import licences only when transparent assessments confirm supply gaps and operators meet published, merit-based criteria. The regulator says domestic refineries supplied about 75 per cent of Nigeria's petrol in September 2026.

NMDPRA Chief Executive Rabiu Umar announced the policy at the 2026 OTL Africa Downstream Energy Week in Lagos, themed Secure Energy, Shared Prosperity. He said imports would remain permitted, but approvals must be justified by verifiable shortfalls and rules that everyone can audit.

Import door open, but with conditions

Umar said: '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.'

The regulator said the approach is meant to protect competition and stop unnecessary imports from undermining Nigeria's growing domestic refining industry. Umar said local refineries supplied approximately 75 per cent of petrol requirements in September 2026, a major shift from previous dependence on imported fuel.

He said: 'A year ago, more than half of the petrol in Nigerian tanks was imported. Last month, three litres in every four were refined here.'

Umar still warned that reliance on one major refinery is a supply risk. He called for support for modular refineries, rehabilitation of government-owned facilities and maintenance of alternative import channels to prevent disruption.

Landing cost falls, pump price pressure stays

The Major Energies Marketers Association of Nigeria (MEMAN) reported that the estimated landing cost of imported petrol fell to N1,283.81 per litre from N1,292.88. The reduction is N9.07 per litre, about 0.7 per cent, according to its October 21 energy bulletin.

The new landing cost is N66.19 below Dangote Refinery's reported gantry price of N1,350 per litre. It is also lower than marketers' ex-depot prices of N1,348 to N1,358 per litre.

Despite the decline, motorists in Lagos and Abuja were paying between N1,370 and N1,429 per litre. Landing costs exclude some distribution expenses and retail margins, so cheaper imports do not automatically translate into lower pump prices.

No price fixing, but licensing reforms planned

Umar said the Petroleum Industry Act does not empower NMDPRA to fix petrol prices. He said the regulator must ensure fair competition, transparent transactions and compliance with market rules.

NMDPRA has signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to strengthen enforcement and consumer protection. It is also consulting stakeholders on regulations to discourage anti-competitive practices.

The authority plans to simplify licensing, reduce bureaucratic delays and improve regulatory efficiency. Some licences currently renewed annually could become valid for five years, subject to applicable requirements. NMDPRA also intends to introduce more remote licensing services so qualified operators can secure approvals without visiting its offices.

Umar said predictable regulations, stronger domestic refining capacity and transparent import arrangements are needed to sustain fuel supply and attract investment. The immediate concern for consumers is whether higher local production and lower import costs will lead to meaningful reductions in petrol prices.

Nigeria's domestic refining sector has also recorded another development. Edo Refinery exceeded 100 per cent capacity utilisation in September 2026, emerging as the country's best-performing modular refinery by that measure. Four operational modular refineries collectively supplied 620,000 litres of Automotive Gas Oil, known as diesel, daily to the Nigerian market.