The Federal Government has suspended the issuance of petrol import licences for a second consecutive month as local refining capacity increasingly meets domestic demand.
The development follows data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), showing that most petrol supplied in Nigeria in February came from local refineries.
The move signals the government’s push to enforce provisions of the Petroleum Industry Act (PIA), which allow imports only when domestic refining capacity falls short.
The decision is also seen as a boost for local refiners, particularly Dangote Refinery, which had previously challenged petrol import licences issued by the regulator.
What the data is saying
Data from the NMDPRA February factsheet shows that domestic refining accounted for the bulk of petrol supply in Nigeria during the period. The figures highlight a significant shift from the country’s long-standing reliance on imported petroleum products.
- Out of the 39.6 million litres of petrol supplied domestically, 36.5 million litres were produced by the Dangote Refinery, while about 3 million litres were imported.
- The data indicates that domestic refining now accounts for roughly 92% of petrol supplied across the country.
- The figures also show that out of the 24.4 million litres of diesel supplied domestically, 8.2 million litres came from the Dangote Refinery, representing about 33.6% of total supply.
Nigeria’s daily petrol consumption dropped to 56.9 million litres in February compared with 60.2 million litres recorded in January.
According to a Bloomberg report, the spokesperson of the NMDPRA, George Ene-Ita, confirmed that import licences will now only be issued when domestic production is insufficient to meet national demand.
More Insights
The policy aligns with provisions in the Petroleum Industry Act, which empower the regulator to grant import permits only when local production cannot meet demand.
- Dangote Refinery had previously filed a lawsuit against the NMDPRA, the Nigerian National Petroleum Company (NNPC) Limited and several oil marketing companies in a bid to stop the issuance of petrol import licences.
- Although the refinery later withdrew the case against the regulator and NNPC, the refinery owner continued to criticise the former NMDPRA leadership, accusing it of corruption and economic sabotage for issuing the licences.
- The previous regulator had argued that granting import licences was necessary to maintain competition in the market and prevent monopoly by a single supplier.
Currently, following the shutdown of the Port Harcourt Refinery, Dangote Refinery remains the only facility producing petrol in Nigeria, while most modular refineries primarily produce Automotive Gas Oil (diesel).
The increased supply of petrol from local refineries, especially the Dangote Refinery, has significantly reduced Nigeria’s dependence on imported petroleum products, a development widely welcomed by industry stakeholders.
What you should know
Nigeria’s domestic petrol supply has been rising steadily as the Dangote Refinery ramps up production capacity.
- In January 2026, the Dangote Petroleum Refinery supplied an average of 40.1 million litres of Premium Motor Spirit (PMS) per day.
- The output represented an increase of about 8 million litres daily compared with the 32 million litres recorded in December 2025.
- The steady increase in production is part of the refinery’s broader strategy to meet a larger share of Nigeria’s domestic fuel demand.
However, despite increased local refining capacity, petrol prices have risen sharply in recent weeks, climbing from an average of about N839 per litre to roughly N1,200 per litre amid global oil market tensions linked to the Middle East conflict.
The rising local production capacity is expected to gradually reduce the country’s reliance on imported petroleum products while strengthening Nigeria’s energy security.
