Dangote, Local Refiners Rejoice As FG Halts Petrol Import Permits

The Federal Government of Nigeria has suspended the issuance of import licences for Premium Motor Spirit (PMS), widely known as petrol, for a second consecutive month, as authorities enforce the provisions of the Petroleum Industry Act (PIA). According to Ireporter Online, the law now mandates that petrol imports may only be approved when domestic production falls short of national demand.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicate that no petrol import licences were issued in February, with the Crude Oil Refineries Association of Nigeria confirming that no permits have been granted in March either. Industry experts describe the development as a deliberate policy shift aimed at prioritising local refining capacity.

The move is seen as a major boost for domestic refineries, particularly the Dangote Refinery and other emerging local projects. Last year, the Dangote Refinery and other local producers had taken legal action against the regulator and the Nigerian National Petroleum Company Limited, arguing that continued petrol imports were undermining domestic refining investments.

Under the PIA, regulators are authorised to issue import permits only when local production cannot meet the nation’s consumption needs. While stakeholders previously argued that imports were necessary to maintain market competition and prevent monopolies, the latest decision underscores the government’s renewed focus on supporting local production.

The move comes amid global fuel market volatility, as fuel pump prices in Nigeria have surged by more than 54 per cent following recent military strikes on Iran by the United States and Israel. The NMDPRA spokesperson, George Ene-Ita, attributed the sharp price increase to the escalating Middle East conflict.

Industry data also revealed a decline in domestic petrol consumption, dropping to 56.9 million litres per day in February 2026, down from 60.2 million litres in January. In the same period, the Dangote Refinery supplied approximately 36.5 million litres of petrol and eight million litres of diesel to the local market, volumes deemed sufficient to meet national demand.

Eche Idoko, spokesperson for the Crude Oil Refineries Association of Nigeria, welcomed the development, describing the regulator’s stance as a positive step for the local refining industry. “For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” he said. The association has repeatedly called for an end to petrol import licences, citing their negative impact on domestic refiners’ profit margins.