CPPE urges NMDPRA to restrict fuel imports to verified supply shortfalls

The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to restrict petroleum-product import approvals to verified domestic supply shortfalls, warning that indiscriminate imports could undermine investment in local refining.

The business advocacy group made the recommendation in a policy brief signed by its Chief Executive Officer Dr Muda Yusuf on Sunday.

The group noted that average Premium Motor Spirit (PMS) imports increased from 5.9 million litres per day in May 2026 to 18.1 million litres per day in June, a 206.8% jump.

The group noted that imports rose further to 19.7 million litres per day in July, accounting for 43.3% of total PMS receipts, compared with 12.4% in May.

What the CPPE is saying

CPPE said imports remain necessary when domestic supply cannot meet demand, including during refinery outages, seasonal demand increases, quality constraints or strategic-stock replenishment.

However, it argued that import permits should only be granted after NMDPRA establishes and publishes the size of any supply deficit.

• “The concern is not with imports required to close a genuine and independently verified shortfall,” the organisation said, adding that the policy should prevent imports from displacing adequate domestic production.

The group said a credible assessment should consider projected demand, refinery output, inventories, committed domestic deliveries, product specifications and logistics constraints before determining the volume that needs to be imported.

It also recommended that qualified domestic refiners be given a defined period to meet identified demand before any residual requirement is allocated to importers.

CPPE’s position comes against the backdrop of increased domestic refining activity.

• The group also pointed to rising seaborne petroleum-product exports as evidence that Nigeria’s refining capacity is expanding beyond domestic requirements for some products.
• CPPE said the development makes it increasingly important for regulators to distinguish between genuine supply deficits and imports that could compete directly with available domestic production.

The organisation noted that the Petroleum Industry Act (PIA), particularly Sections 317(8)–(9), provides for petroleum-product import licensing in the context of domestic supply shortfalls.

Get up to speed

The NMDPRA previously reported that Nigeria recorded a sharp drop in domestic petrol supply and consumption in July 2026, even as inventory levels improved across major petroleum products.

• The regulator’s July 2026 Factsheet shows that daily domestic Premium Motor Spirit (PMS) supply fell 21% month-on-month to 25.8 million litres per day (lpd), down from 32.5 million lpd in June.
• Nairametrics earlier reported that Nigeria’s crude oil production remained above 1.5 million barrels per day (bpd) for the third consecutive month in July 2026 despite a decline from the previous month.

The increase in crude oil production has coincided with higher domestic crude supplies to local refineries as Nigeria continues efforts to strengthen its refining and energy supply chain.

Domestic crude oil and condensate supply to local refineries reached 97.4% in the second quarter of 2026.

What you should know

Earlier this year, NUPRC declared the nation’s total petroleum reserves at 37.01 billion barrels of crude oil and condensate, alongside 215.19 trillion cubic feet (TCF) of natural gas as of January 1, 2026.

Also, the Nigerian National Petroleum Company Limited said it plans to grow Nigeria’s gas reserves from the current 210 trillion cubic feet to about 600 trillion cubic feet.

The agency recently stated that Nigeria remains on course to achieve its target of producing 3 million barrels of crude oil per day by 2030.