Fuel Import Row: NMDPRA Under Fire Over Alleged Favouritism

According to Ireporter Online, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has come under scrutiny following allegations by petroleum marketers that the agency has been granting fuel import licences mainly to a limited number of companies.

The controversy emerged during an interactive session organised by the House of Representatives Committee on Petroleum Resources (Downstream), where key players in the petroleum industry raised concerns over transparency and fairness in the country’s deregulated downstream sector.

Stakeholders, including the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Major Energies Marketers Association, presented their concerns before lawmakers.

DAPPMAN alleged that the same group of companies repeatedly received fuel import licences during the first, second and third quarters of 2026, claiming that other qualified operators with the capacity to participate in fuel importation were being sidelined.

The association’s Executive Secretary, Olufemi Adewole, stated that the licensing process should be based on fairness, equal opportunity and transparent standards, especially under the government’s deregulation policy for the petroleum sector.

Adewole argued that allowing only a few companies to benefit from import approvals could reduce competition, discourage investment and create an uneven business environment within the industry.

He also raised concerns over the condition of petroleum depot operators across the country, noting that data from NMDPRA reportedly showed that several licensed depots recorded little or no trading activity within the past year, leaving operators facing declining revenues and operational challenges.

DAPPMAN maintained that while boosting local refining capacity remains important, fuel importation should continue to serve as a backup option during periods of supply disruptions caused by refinery maintenance, logistics challenges or other unforeseen circumstances.

The association further criticised what it described as duplicated port charges and questioned the continued use of dollar-based billing for domestic petroleum transactions despite government directives discouraging foreign currency charges for local businesses.

Responding to the concerns, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, said lawmakers would investigate the allegations and invite NMDPRA officials to explain the criteria used in awarding fuel import licences.

Ugochinyere stated that the committee would examine whether the licensing process aligns with the objectives of the Petroleum Industry Act and guarantees equal opportunities for qualified operators.

Energy stakeholders also expressed concerns over the alleged concentration of fuel import opportunities among a few companies, warning that such practices could undermine the objectives of deregulation and weaken investor confidence in the sector.

However, the NMDPRA defended its licensing process, insisting that approvals are not issued arbitrarily but are based on established performance indicators and operational requirements.

A senior official of the regulatory agency explained that companies receiving import licences had met the necessary conditions and standards required to support the country’s fuel supply chain.

The authority maintained that its decisions are guided by regulatory benchmarks and that only companies capable of meeting the required obligations are considered for approval.