NMDPRA sets new conditions for petrol import licences

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has set new conditions for granting petrol import licences, saying this will be based on published merit-based criteria and a transparent determination of supply shortfalls, as domestic refineries increase their share of the country’s fuel supply.

The Authority Chief Executive, Rabiu Umar, disclosed this while delivering the keynote address at the 2026 OTL Africa Downstream Energy Week in Lagos, with the theme ‘Secure Energy, Shared Prosperity’.

Umar said import licences would remain available to eligible operators, but the process would be guided by clear criteria and verifiable assessments of supply gaps to ensure transparency and fair competition in the downstream petroleum market.

“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,” he said.

His position comes amid a significant shift in Nigeria’s petrol supply, with the regulator saying domestic refineries now account for about 75 per cent of the petrol supplied to the country, while imports have more than halved within a year.

“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,” Umar said.

He attributed the change to increased domestic refining, adding that the country had continued to maintain fuel supply despite disruptions in the global energy market.

He maintained that the shift towards local refining had strengthened Nigeria’s energy security by reducing dependence on imported petroleum products and keeping more of the value generated from the sector within the domestic economy.

“A war in the Gulf has shaken the world’s fuel supply and pushed crude oil to around one hundred dollars a barrel. Through it all, Nigeria kept its fuel flowing, because more of that fuel is now made here. That shift is what this Energy Week is about,” he said.

However, the NMDPRA chief warned that the country’s growing reliance on domestic refining should not lead to complacency, noting that a large proportion of local supply currently came from one major refinery.

According to him, energy security required a diverse supply base, making it necessary to support smaller refineries, revive government-owned refineries and retain access to imports where domestic production falls short of demand.

“We are also clear-eyed. Much of this supply comes from one large refinery, which ran above its nameplate capacity in September. Energy security also means diversity of supply,” he said.

Umar noted that the authority would continue to support modular refineries and work with the Nigerian National Petroleum Company Limited towards returning the country’s state-owned refineries to operation.

He also said the regulator would maintain import channels to ensure that the market had alternative sources of supply when necessary.

Umar stated that the regulator’s role under the law was not to determine petroleum product prices but to ensure that operators competed fairly and that market transactions were conducted transparently.

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“I generally believe the market will set prices, and I think it’s a controversial element, but by the PIA, NMDPRA does not set prices. What NMDPRA does is to ensure fair market competition in the market, and to ensure that practices are done transparently, sustainably, and at arm’s length,” he said.

He said the authority had not recorded nationwide petroleum supply disruptions in the past couple of years, adding that widening the supply base and making market information available to stakeholders would help sustain the gains.

The NMDPRA chief also said the regulator was working to strengthen competition in the market through consultations on proposed regulations to prevent anti-competitive practices in the midstream and downstream petroleum sectors.

He disclosed that the authority had signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to coordinate enforcement and strengthen consumer protection.

According to him, the authority was committed to consulting stakeholders before introducing new regulations, rather than adopting sudden measures that could create uncertainty for businesses and investors.

“One of the key elements that will drive further investment in this sector is to ensure that we are consistent, we are equitable, we are open, and transparent,” Umar said.

He added that the regulator would give businesses and other affected parties the opportunity to contribute to the formulation of regulations that could affect their operations.

He maintained that ensuring the quality of petroleum products was essential to protecting consumers from substandard fuel that could damage equipment or create safety risks.

The regulator is also reviewing its licensing framework to reduce administrative delays and improve the ease of doing business in the sector.

Umar added that some licences that currently required annual renewal could be extended to five-year periods where appropriate, while unnecessary approval steps would be removed.

He said the authority wanted operators to be able to obtain licences remotely without visiting its offices, provided they met the relevant requirements.

“One of the things that discourages people from investing is the complexity of regulation, and to achieve that disentanglement, we have launched an internal review of all the licences that NMDPRA issues,” he said.

He added that the licensing reforms were part of the authority’s broader plan to become a firm, fair and fast regulator, with consistent enforcement of rules and improved responsiveness to operators.