Nigeria’s fuel policy has taken a new turn as the Federal Government moves to temporarily reopen the door for petrol imports, responding to fresh supply concerns tied to geopolitical tensions abroad.
Recent findings show that the Nigerian Midstream and Downstream Petroleum Regulatory Authority has approved new import permits for six oil marketing firms, marking a shift from its earlier stance that local production could meet national demand.
The decision follows disruptions linked to the ongoing crisis in the Middle East, which created a shortfall in supply.
Licences Distribution
According to industry data, the regulator authorised the importation of roughly 180,000 metric tonnes of Premium Motor Spirit (petrol).
The licences were distributed among companies including Bono Energy, Pinnacle, AYM Shafa, Matrix, A.A. Rano, and Nipco.
Each firm is expected to bring in about 30,000 metric tonnes—equivalent to approximately 40.5 million litres—bringing the combined total to around 243 million litres.
This development contrasts sharply with the regulator’s earlier position.
In February and early March, officials maintained that domestic refining had improved significantly, with local refineries producing about 36.5 million litres daily—far outweighing the roughly three million litres previously sourced from imports. On that basis, petrol import licences had been paused.
However, the emerging supply gap has forced a policy adjustment.
Industry analysts say the new permits are limited in scale and designed more as a stabilisation measure than a full return to heavy import dependence.
Energy experts warn that maintaining a balance between local production and strategic imports is essential to prevent market shocks that could ripple through the broader economy.
At the same time, challenges persist on the refining side.
Sources within the Dangote Group revealed that its flagship facility, the Dangote Petroleum Refinery, is grappling with foreign exchange losses linked to the naira-for-crude arrangement.
Under the policy, crude oil is supplied in naira, with refined products expected to be sold locally in the same currency.
Dangote Hit By Forex Losses
However, insiders say the refinery is currently supplying more refined products than the volume of crude it receives under the arrangement, creating a mismatch that leads to forex losses—especially when compared to potential earnings from exports.
The refinery has called for improved crude supply, pointing to provisions in the Petroleum Industry Act, which prioritise meeting domestic demand before allowing crude exports.
According to sources, ensuring adequate feedstock for local refineries remains critical to achieving Nigeria’s long-term goal of reducing fuel imports and strengthening energy security.
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Overall, the latest move highlights the delicate balancing act facing policymakers—boosting local refining while remaining flexible enough to respond to global supply shocks.