The Federal Government has once again withheld approvals for petrol import licences, marking the second straight month without new permits as authorities intensify efforts to prioritise domestic refining in line with the Petroleum Industry Act (PIA).
Industry data indicates that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) did not grant any licences for the importation of Premium Motor Spirit (PMS) in February.
The situation has remained unchanged in March, according to the Crude Oil Refineries Association of Nigeria (CORAN), which confirmed that no approvals have been issued so far this month.
The development signals a deliberate shift by the government toward strengthening local refining capacity by restricting imports except in situations where domestic production cannot meet national demand, as stipulated in the PIA.
Analysts believe the policy is likely to favour local refining projects, particularly the massive Dangote Refinery, alongside several smaller refineries currently emerging across the country.
Petrol Imports Vs Domestic Refining
Last year, the Dangote Refinery and other local refiners had initiated legal proceedings against regulators and the state-owned Nigerian National Petroleum Company Limited (NNPC Ltd), arguing that continued petrol imports were undermining the viability of domestic refining investments.
Under the Petroleum Industry Act, regulators are authorised to approve petrol imports only when local production falls short of national consumption levels.
Previously, some industry stakeholders supported continued imports, warning that completely shutting them out could limit competition in the downstream sector and potentially create monopolistic conditions.
However, the government’s latest move suggests a stronger commitment to boosting domestic output.
At the same time, global developments have added fresh pressure to fuel prices. Pump prices have climbed by more than 54 per cent following recent military strikes by the United States and Israel on Iran, an escalation that has unsettled international oil markets.
Geopolitical Tensions
According to NMDPRA spokesperson George Ene‑Ita, the surge in pump prices is closely linked to the geopolitical tensions in the Middle East.
Meanwhile, official data also points to a decline in petrol demand within Nigeria.
Average daily consumption fell to about 56.9 million litres in February 2026, down from roughly 60.2 million litres recorded in January.
During the same period, the Dangote refinery supplied approximately 36.5 million litres of petrol to the domestic market, alongside about eight million litres of diesel.
Regulators say the combined local supply has been sufficient to support domestic needs for now, which explains the decision to temporarily halt import approvals.
Responding to the policy direction, CORAN spokesperson Eche Idoko welcomed the move, describing it as a significant boost for Nigeria’s refining industry.
According to him, discouraging petrol imports is essential to safeguarding the financial viability of local refineries.
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“For us, any policy that strengthens domestic production is a step in the right direction,” Idoko said, adding that the key challenge now will be maintaining the momentum and ensuring consistent support for local refiners.