The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says petrol import licences will be issued strictly on the basis of published merit-based criteria and independently verifiable assessments of domestic supply shortfalls, as Nigeria’s expanding refining capacity reshapes the downstream petroleum market.
The Authority Chief Executive, Rabiu Umar, disclosed this on Monday while delivering the keynote address at the 2026 OTL Africa Downstream Energy Week in Lagos. He said eligible operators would retain access to import licences, but approvals would be guided by transparent criteria and demonstrable gaps between domestic supply and national demand.
“For our importers, the door stays open. Import licences will be issued only on the basis of published merit-based criteria and also a transparent shortfall determination that everybody can audit,” Umar said.
The policy signals a more structured approach to petrol import licensing as domestic refineries take on a greater share of Nigeria’s fuel supply.
According to Umar, locally refined petrol accounted for approximately 75 per cent of supply in September, compared with a market that relied much more heavily on imports a year earlier. He added that petrol imports had more than halved over the period.
“A year ago, more than half of the petrol in Nigerian tanks was imported. Last month, three litres in every four were refined here. I think that is a significant achievement,” he said.
Umar attributed the shift to increased domestic refining and said it had strengthened Nigeria’s capacity to maintain fuel availability amid disruptions in the international energy market. Greater local production, he argued, also reduces exposure to imported fuel and allows more value from refining to remain within the domestic economy.
However, the NMDPRA chief cautioned against excessive dependence on a single major supplier. He noted that a substantial share of local petrol supply currently came from one large refinery, which operated above its nameplate capacity in September. He said a resilient supply system required a broader mix of sources, including modular refineries, rehabilitated state-owned refineries and imports when local production could not meet demand.
The Authority will continue supporting modular refineries and work with the Nigerian National Petroleum Company Limited (NNPC Ltd) towards restoring government-owned refineries to operation. Retaining import channels, Umar said, would provide an alternative source of supply whenever domestic output fell short of market requirements.
Beyond import licensing, the regulator is reviewing its regulatory framework to improve competition, reduce administrative bottlenecks and make the sector more attractive to investors. Umar said the NMDPRA was consulting stakeholders on proposed regulations to prevent anti-competitive practices in the midstream and downstream petroleum sectors. The Authority has also signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to strengthen coordination on enforcement and consumer protection.
Umar reiterated that the NMDPRA does not determine petroleum product prices under the Petroleum Industry Act (PIA), but is responsible for promoting fair competition and transparent market conduct. He said consistent regulation, equitable enforcement and stakeholder consultation were essential to building investor confidence and sustaining the sector’s development.
The Authority is also reviewing its licensing processes to make approvals faster and less cumbersome. Proposed changes include extending the validity of some licences that currently require annual renewal to as long as five years, where appropriate, removing unnecessary approval stages and enabling operators to complete licensing processes remotely, subject to regulatory requirements.
For downstream operators, the effectiveness of the new import-licensing approach will depend on how clearly supply shortfalls are defined, how consistently published criteria are applied and how quickly approvals can be processed when domestic production is insufficient. A transparent framework could help provide certainty for importers, refiners and other market participants while protecting supply security and competition.
As domestic refining assumes a larger role in Nigeria’s petrol market, the NMDPRA’s challenge will be to balance support for local production with the flexibility required to prevent shortages. The regulator’s stated position is that imports will remain an option—but access will be determined by merit and verifiable market need rather than an automatic entitlement.