Oil
NMDPRA outlines transparent criteria for petrol import permits
The downstream regulator has introduced new guidelines for petrol import permits, even as domestic refineries now provide three-quarters of the nation's fuel supply.
Key points
- Petrol import licences will rely on published merit-based criteria and audited supply shortfalls.
- Domestic refineries currently account for approximately 75 percent of the country's petrol supply.
- The regulator is reviewing its framework to extend licence validity periods and ease administrative burdens.
What happened
New administrative requirements for petrol import licences have been unveiled by the Nigerian Midstream and Downstream Petroleum Regulatory Authority. According to Punch reporting, the agency's chief executive, Rabiu Umar, announced the shift during the OTL Africa Downstream Energy Week held in Lagos. He stated that authorisations for importing fuel will depend strictly on published criteria and verifiable supply gaps that can be audited by industry stakeholders.
While imports have decreased significantly, the regulator emphasised that access to foreign products remains open to ensure adequate market provisioning. Recent data shows that local production now covers about 75 percent of national petrol demand, marking a major turnaround from the previous year when over half of domestic consumption relied on foreign shipments. However, the agency cautioned that heavy reliance on a single major processing facility, which operated above its nameplate capacity in September, poses structural risks to energy security. Officials are therefore working to encourage modular operators and revive state-owned facilities managed by the Nigerian National Petroleum Company Limited.
Regulatory reforms
The authority also detailed plans to streamline its licencing procedures to improve the ease of doing business for energy enterprises. Proposals include extending specific annual permits to five-year validity periods and enabling remote applications to eliminate unnecessary bureaucratic delays. Furthermore, the agency has partnered with the Federal Competition and Consumer Protection Commission through a formal memorandum of understanding to enforce fair trade practices and protect consumers from substandard petroleum products.
Why it matters
For investors and policymakers across the subregion, balancing local refining growth with transparent import frameworks is critical for maintaining market stability. With fuel exports accounting for 85.9 percent of merchandise exports in Nigeria according to 2025 World Bank figures, safeguarding domestic supply chains directly impacts macroeconomic resilience. As global crude benchmarks remain elevated, exemplified by Brent spot prices reaching 115.22 US dollars per barrel in October 2026 according to US Energy Information Administration data, diversifying supply sources and ensuring predictable regulatory oversight will remain vital for attracting long-term capital into the midstream and downstream sectors.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
