By Emmanuella Opara | October 27th 2026
KEY POINTS
- NMDPRA says petrol import licences will be issued based on published criteria and verifiable assessments of domestic supply shortfalls.
- Domestic refineries now account for about 75 per cent of Nigeria’s petrol supply, according to the regulator.
- The authority plans to support modular refineries, work towards restarting government-owned facilities and retain imports as a backup supply source.
- Licensing reforms could extend some annual permits to five years and allow operators to apply remotely.
MAIN STORY
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has introduced stricter transparency requirements for petrol import licences, linking approvals to published merit-based criteria and verifiable assessments of supply shortfalls as domestic refining expands.
The Authority Chief Executive, Rabiu Umar, announced the policy at the 2026 OTL Africa Downstream Energy Week in Lagos, where he said eligible operators would remain able to import petrol but would have to meet clearly defined conditions.
“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 announcement comes as the regulator estimates that locally refined petrol now accounts for about 75 per cent of national supply, while imports have fallen by more than half 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,” he said.
Umar attributed the shift to increased domestic refining, saying local production had helped Nigeria maintain fuel availability despite disruptions in international energy markets. He argued that greater domestic supply reduced the country’s dependence on imported petroleum products and retained more economic value within Nigeria.
He cited the effects of the conflict in the Gulf on global fuel supplies and crude oil prices, which he said had risen to around $100 per barrel, as evidence of the importance of strengthening local refining capacity.
However, the NMDPRA chief cautioned against relying too heavily on a single domestic supplier. He said much of Nigeria’s current petrol supply came from one major refinery, which operated above its nameplate capacity in September.
Umar said energy security required a more diversified supply base, including support for modular refineries, efforts to return government-owned refineries to operation and continued access to imported products when local production could not meet demand.
The authority would therefore maintain import channels as an alternative source of supply while working with the Nigerian National Petroleum Company Limited on the return of state-owned refineries.
Umar also clarified the regulator’s role in the downstream market, saying the Petroleum Industry Act did not empower the NMDPRA to determine petroleum product prices. Instead, he said, the authority was responsible for ensuring fair competition and transparent market practices.
“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.
The regulator is also pursuing measures to strengthen competition and consumer protection. Umar disclosed that the authority had signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to coordinate enforcement.
He said consultations were ongoing on proposed regulations aimed at preventing anti-competitive practices in the midstream and downstream petroleum sectors. The authority, he added, intended to engage stakeholders before introducing rules that could affect businesses and investors.
The NMDPRA is also reviewing its licensing framework to reduce administrative delays and improve the ease of doing business. Under the proposed reforms, some licences that currently require annual renewal could be extended to five-year periods where appropriate.
The authority also plans to remove unnecessary approval stages and enable operators to complete licensing processes remotely, provided they satisfy 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,” Umar said.
He said the reforms were intended to make the regulator more efficient while maintaining consistent enforcement and protecting consumers from substandard petroleum products that could damage equipment or create safety risks.
THE ISSUES
The new licensing conditions come as domestic refineries take a larger share of Nigeria’s petrol market. Requiring import approvals to reflect published criteria and measurable supply gaps could make the process more transparent for operators and provide a clearer basis for determining when imports are needed.
However, the regulator’s warning about dependence on one major refinery highlights a potential vulnerability in the supply chain. Maintaining alternative sources, including modular refineries, government-owned facilities and imports, remains part of the authority’s stated approach to energy security.
The proposed licensing changes also have implications for businesses. Longer licence periods, fewer approval stages and remote applications could reduce administrative burdens, although the source does not specify when the reforms will take effect or which licence categories will qualify for extended validity.
WHAT’S BEING SAID
“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,” Rabiu Umar, Authority Chief Executive of the NMDPRA, said.
“Energy security also means diversity of supply,” Rabiu Umar, Authority Chief Executive of the NMDPRA, said.
“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,” Rabiu Umar, Authority Chief Executive of the NMDPRA, said.
“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,” Rabiu Umar, Authority Chief Executive of the NMDPRA, said.
WHAT’S NEXT
The NMDPRA is expected to continue reviewing its licensing framework and consulting stakeholders on proposed competition regulations. The authority will also maintain import channels, support modular refineries and work with the NNPC towards restoring government-owned refineries.
The source does not provide a timetable for implementing the licensing changes or identify the specific permits that may qualify for five-year validity.
BOTTOM LINE
The NMDPRA is tying petrol import licences more closely to transparent criteria and demonstrable supply shortfalls as domestic refineries provide a growing share of Nigeria’s fuel. Its challenge will be to preserve fair competition and reliable supply while reducing dependence on a single major producer and making regulation less burdensome for operators.
