Nigeria’s Federal Government has suspended petrol import licences for the second month, prioritizing local refining capacity and boosting domestic production.
This move aligns with the Petroleum Industry Act, allowing imports only when local production falls short.
Dangote Refinery, Africa’s largest, is the primary beneficiary, supplying 92% of Nigeria’s petrol in February, with local refineries meeting most of the demand.
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), no petrol import licences were issued in February.
The Crude Oil Refineries Association of Nigeria (CORAN) also confirmed that none had been granted so far in March, indicating a clear policy shift towards prioritising locally refined fuel.
Under the Petroleum Industry Act (PIA), regulators are permitted to approve petrol imports only when local production cannot meet national demand.
The policy change follows long-standing concerns by local refiners, including the Dangote Refinery, which previously took legal action against the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over continued fuel imports.
Despite concerns that limiting import licences could reduce market competition, regulators say domestic supply is currently sufficient.
Meanwhile, petrol prices have surged by more than 54% following military strikes by the United States and Israel on Iran, which has pushed global oil prices upward.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority attributed the spike in fuel prices to the escalating conflict in the Middle East.
Nigeria’s average daily petrol consumption also declined to 56.9 million litres in February 2026, down from 60.2 million litres in January.
During the same period, the Dangote Refinery supplied 36.5 million litres of petrol and 8 million litres of diesel to the domestic market.
Regulators say these volumes were sufficient to meet demand, which informed the decision to withhold import licences.
Reacting to the development, CORAN spokesperson Eche Idoko described the move as a positive step toward strengthening local refining.
“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” he said.
