The Federal Government of Nigeria has suspended the issuance of import licences for Premium Motor Spirit (PMS), popularly known as petrol, in a move aimed at strengthening domestic refining capacity.
The decision aligns with the provisions of the Petroleum Industry Act, which states that import licences should not be granted when local production is sufficient to meet national demand.
Confirming the development, the Head of Public Affairs at the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene-Ita, said the agency has not issued any petrol import licences this year.
According to him, domestic production has so far been able to meet the country’s demand for petrol.
“We have not issued import licences this year because local production has met national requirements for PMS. There is no need to issue licences when domestic sources can adequately supply the market. If there is any shortfall, the situation will be reviewed,” Ene-Ita said.
Data from the regulatory authority shows that the Dangote Refinery supplied about 64 per cent of the country’s petrol demand, while the remaining supply came from existing stock carried over from previous months.
Prior to the suspension, several oil marketing companies, including TotalEnergies SE, Conoil Plc, and MRS Nigeria Plc, had accounted for about 25 per cent of petrol imports into Nigeria.
The new policy is expected to significantly boost the operations of the Dangote Refinery, which has repeatedly stated its readiness to meet the country’s petrol demand.
The refinery, with a processing capacity of about 650,000 barrels of crude oil per day, is currently operating at approximately 78 per cent capacity, according to the regulator.
Industry experts have largely welcomed the development, describing it as a positive step toward strengthening Nigeria’s energy independence.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, described the policy as a move that would boost investor confidence in the country’s refining sector.
He explained that reducing petrol imports would help conserve foreign exchange, as funds previously used to import fuel could now be redirected to other sectors of the economy.
Yusuf also dismissed fears of possible supply shortages, noting that the Dangote Refinery has significant storage capacity while the Nigerian National Petroleum Company Limited maintains strategic reserves.
“The Petroleum Industry Act provides for such contingencies. This development is good news for the economy and for investors in the sector,” he said.
Similarly, the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, described the move as a welcome development.
He called on the government and relevant stakeholders to ensure a steady supply of crude oil to support domestic refining operations.
According to Maigandi, encouraging local refining is particularly important at a time of global uncertainties affecting crude oil production and the export of refined petroleum products.
