Keypoints
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued new gasoline import licenses to six local marketers on May 6, 2026.
- The licenses authorize the import of 600,000 metric tons of gasoline, covering approximately 25% of Nigeria’s domestic consumption.
- This policy shift follows the April 29 exit of former CEO Saidu Mohammed and the subsequent appointment of Rabiu Umar as the new head of the authority.
- The move signals a departure from recent months where imports were heavily restricted to support the domestic supply from the Dangote refinery.
- Market observers cite concerns over energy security and over-dependence on a single domestic source as drivers for the renewed import allowances.
Main Story
Nigeria’s downstream regulator has significantly loosened restrictions on foreign fuel imports, granting six marketers licenses to bring in 600,000 metric tons of gasoline.
This volume represents more than triple the previously approved allowances. The licensed entities: Matrix, AA Rano, AYM Shafa, Nipco, Pinnacle, and Bono are expected to source the product from the offshore Lome market.
This sudden pivot in policy follows a leadership shakeup at the NMDPRA, where the Senate confirmed Rabiu Umar as the new CEO on May 7, 2026, just days after the departure of his predecessor.
The shift arrives at a time of tension within the Nigerian fuel sector. While the Dangote refinery achieved 94% capacity in March, local market supplies reportedly fell, leading to concerns regarding domestic energy security. P
roponents of the new import permits argue that the country must avoid total reliance on a single supplier, particularly amid rising global prices and Middle Eastern instability.
Conversely, the Dangote refinery has expressed readiness to meet full domestic demand, provided the regulator ensures a level playing field against what it describes as “inferior or sanctioned” foreign products.
The Issues
- Balancing the growth of Nigeria’s domestic refining capacity with the need for a diversified supply chain to ensure energy security.
- High global gasoline prices, assessed at $1,201/mt, place significant financial pressure on marketers and consumers alike.
- Potential regulatory challenges in monitoring the quality of imported fuels to prevent the entry of substandard products into the local market.
What’s Being Said
- “The only reason that could be undercut is through inferior or sanctioned products,” said David Bird, CEO of the Dangote refinery, regarding competition with imports.
- Local media noted that the transition in leadership at the NMDPRA was a “shock exit” intended to realign the country’s fuel policy trajectory.
- Market sources indicate the move is a “significant policy departure” from the protectionist stance observed since late 2025.
What’s Next
- The first shipments under the new 600,000 mt quota are expected to arrive from the Lome market in the coming weeks.
- New CEO Rabiu Umar is expected to outline a long-term strategy for balancing domestic production with import parity.
- Analysts will monitor the Dangote refinery’s response to increased competition and its impact on domestic fuel pricing at the pump.
Bottom Line A major shift in leadership at the NMDPRA has led to a three-fold increase in gasoline import quotas, ending a period of strict market protectionism for domestic refining.
