FG Introduces New Conditions for Petrol Import Licences as Local Refining Expands

Nigeria’s petroleum regulator has announced new conditions for issuing petrol import licences as the country increases its reliance on locally refined fuel.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed that future import approvals would depend on transparent assessments of domestic supply shortages and clearly established eligibility requirements.

The announcement was made by the authority’s Chief Executive, Rabiu Umar, during the 2026 OTL Africa Downstream Energy Week in Lagos.

Umar explained that qualified petroleum marketers would still be permitted to import petrol when necessary.

However, import licences would be granted based on published criteria and verifiable shortages in domestic fuel supply.

The regulator said the approach was intended to promote fair competition, improve transparency and ensure that imported products complement local refinery output.

According to the NMDPRA, Nigerian refineries now account for approximately 75 per cent of petrol supplied to the domestic market.

The authority also reported that petrol imports had fallen by more than half within one year.

Umar described the development as progress towards reducing Nigeria’s dependence on imported petroleum products.

Nevertheless, he acknowledged that the country must maintain alternative supply arrangements to prevent shortages.

The regulator also disclosed plans to simplify petroleum licensing procedures and reduce administrative delays.

Some licences currently requiring annual renewal could be extended to five years where appropriate.

The authority is also considering improvements that would allow qualified operators to complete licensing processes remotely.

Greater domestic refining capacity could strengthen Nigeria’s energy security and reduce exposure to international supply disruptions.

However, increased local production does not automatically guarantee cheaper petrol.

Fuel prices will continue to depend on production costs, market competition and other economic conditions.

The new licensing conditions represent another development in Nigeria’s changing petroleum industry.

While the government seeks to encourage local refining, maintaining fair competition and reliable fuel supplies will remain essential to protecting consumers and supporting economic growth.

Source: Punch Newspapers, 27 October 2026.

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