Nigeria has suspended the issuance of gasoline import licences for the second consecutive month as regulators enforce the Petroleum Industry Act (PIA), which allows imports only when domestic supply falls short.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that no import licences were issued in February, while the Crude Oil Refineries Association of Nigeria (CORAN) confirmed none has been issued so far in March, signaling a clear shift toward prioritising local refining.
The move marks a significant win for the Dangote Refinery, which last year sued the regulator and the state oil company to halt imports.
Under the PIA, import permits can only be granted if domestic production cannot meet national demand. The previous regulator, who resigned last year, argued that issuing licences was necessary to maintain competition and prevent market dominance.
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According to Reuters, fuel pump prices have surged over 54% following U.S. and Israel strikes on Iran, pushing global oil markets higher.
NMDPRA spokesperson George Ene‑Ita attributed the spike to escalating conflict in the Middle East. Meanwhile, Nigeria’s average daily petrol consumption dropped to 56.9 million litres in February from 60.2 million litres in January.
In February, the Dangote Refinery supplied 36.5 million litres of petrol and 8 million litres of diesel to the local market, a volume deemed sufficient by regulators, prompting the halt of import licences.
Eche Idoko, CORAN spokesperson, praised the decision: “For us, anything that protects local production is a good move. The challenge now is to sustain the momentum.”
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Image Credit: Reuters
