- NMDPRA will grant petrol import licences based on published merit criteria and verified supply shortfalls as domestic refineries expand their market share.
- The regulator is reviewing licensing requirements, strengthening competition rules and maintaining import channels to support fuel supply and attract investment.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will grant petrol import licences based on published criteria and verified supply shortfalls.
Authority Chief Executive Rabiu Umar announced the policy at the 2026 OTL Africa Downstream Energy Week in Lagos. The event’s theme was “Secure Energy, Shared Prosperity”.
Umar said eligible importers could still obtain licences. However, approvals would depend on transparent assessments of domestic supply gaps.
“For our importers, the door stays open,” he said. He added that the process would follow criteria that stakeholders could audit.
The announcement comes as domestic refineries expand their share of Nigeria’s petrol supply. According to Umar, local refineries supplied approximately 75 per cent of petrol consumed last month.
He said imports had more than halved within a year. A year earlier, imported petrol accounted for more than half of Nigeria’s supply.
Domestic refining strengthens fuel supply
Umar attributed the shift to increased domestic refining capacity. He said local production had helped Nigeria maintain fuel availability despite disruptions in global energy markets.
He also linked domestic refining to improved energy security. Producing more fuel locally reduces dependence on imported petroleum products and retains more value within Nigeria’s economy.
However, Umar warned against relying too heavily on one refinery. He said much of the country’s current petrol supply came from a single major facility.
The refinery operated above its nameplate capacity in September, according to Umar. He stressed that energy security also required a diverse supply base.
Consequently, the authority plans to support modular refineries and work with the Nigerian National Petroleum Company Limited. Their collaboration aims to return government-owned refineries to operation.
Meanwhile, petrol imports will remain available when domestic production cannot meet demand. Umar said alternative supply sources would help protect the market against disruptions.
Regulator prioritises competition over price-setting
Umar also clarified the NMDPRA’s role in determining petroleum product prices. He said the Petroleum Industry Act (PIA) does not empower the authority to set prices.
Instead, the regulator focuses on fair competition and transparent market transactions. Umar said market forces should determine prices.
He added that Nigeria had avoided nationwide petroleum supply disruptions over the past couple of years. According to him, broader supply options could help sustain that record.
Furthermore, the authority is consulting stakeholders on proposed regulations against anti-competitive practices. These rules would cover Nigeria’s midstream and downstream petroleum sectors.
The NMDPRA has also signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission. The agreement aims to coordinate enforcement and strengthen consumer protection.
Umar said the authority would consult affected businesses before introducing new regulations. He argued that predictable rules would encourage investment and reduce uncertainty.
NMDPRA reviews licensing requirements
Beyond import licences, the authority is reviewing its wider licensing framework. The reforms aim to reduce administrative delays and improve the ease of doing business.
Under the proposed changes, some licences requiring annual renewal could become valid for five years. However, the extension would depend on the licence and applicable requirements.
The authority also plans to remove unnecessary approval steps. Umar said operators should eventually be able to obtain licences remotely without visiting NMDPRA offices.
“One of the things that discourages people from investing is the complexity of regulation,” he said.
He added that the authority had launched an internal review of its licensing processes. The broader objective is to make regulation firm, fair, faster and more responsive.
Umar said the regulator would continue enforcing standards to protect consumers. Maintaining fuel quality remains essential to preventing equipment damage and safety risks.
He reiterated that consistent enforcement, transparent procedures and stakeholder consultation would support further investment in Nigeria’s downstream petroleum sector.