Petrol Importation Resumes as Local Refinery Supply Gaps Persist

Nigeria’s petrol market has witnessed a significant policy shift as the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), resumes import licences for petrol and diesel to bridge gaps left by local refineries. Industry stakeholders say the move is a strategic response to prevent fuel scarcity, particularly while domestic refining operations continue to expand.

Importation to Stabilise Supply, Not Undermine Local Refining

Akahi News gathered that oil marketers welcomed the resumption of import licences, clarifying that the decision is not intended to undermine the Dangote Petroleum Refinery, but to ensure predictability and availability of fuel in the domestic market.

Industry sources explain that the Dangote Refinery is currently undergoing a major expansion, increasing its production capacity from 650,000 to 1.4 million barrels per day — a process expected to last three years. During this period, the refinery relies on semi-finished feedstocks to produce finished products, limiting its ability to meet the nation’s full fuel demand.

“It is a serious concern. Until the refinery completes its upgrade, it cannot supply all the needs of Nigeria consistently,” an anonymous energy expert told Akahi News.

Importation, therefore, acts as a stabilisation tool, ensuring fuel supply remains uninterrupted while domestic refining capacities scale up. Marketers emphasised that controlled import windows prevent shortages, limit price spikes, and maintain market liquidity.

Government and Regulatory Coordination

The resumption of import licences follows consultations between the Federal Government and oil companies to ensure the supply of crude oil to local refineries. NMDPRA has licensed companies including Eterna and Emadeb to begin petrol importation from July 2026, marking the first import approvals of the year.

Akahi News learnt that the delay in issuing licences earlier this year was linked to leadership changes at NMDPRA and strategic considerations to avoid supply disruptions. The move underscores the government’s focus on proactive gap management rather than a reversal of local refining policies.

Economic Implications of Continued Import Dependence

While importation addresses immediate supply gaps, experts warn it highlights Nigeria’s continued reliance on foreign refined products. Coastal logistics and foreign exchange costs add approximately ₦75 per litre to fuel prices, a burden that may eventually pass to consumers.

Dangote Petroleum Refinery has reiterated that it does not import finished petrol, diesel, or jet fuel, but only unfinished feedstocks that require local processing. The company insists that its production remains stable, supplying over 50 million litres of petrol daily, and cautions that overreliance on imports could inflate pump prices to unsustainable levels.

Observers note that the situation raises broader questions about domestic refinery efficiency, modular refinery operations, and long-term energy policy under the Petroleum Industry Act.

Public Reactions and Market Observations

Discussions on platforms like Nairaland reflect a mix of skepticism and concern among Nigerians. Some users question why imported fuel sometimes sells cheaper than locally refined petrol, while others stress the need for more functional refineries to reduce import dependence.

A notable concern is that the Dangote Refinery’s expansion, though strategic for long-term capacity, has temporarily limited supply, necessitating importation to maintain market stability. Critics argue that while the refinery is privately managed, short-term disruptions affect the broader economy, including inflation, foreign exchange, and public perception.

Akahi News gathered that experts emphasise the importance of multiple operational refineries to diversify supply sources and reduce vulnerabilities from maintenance, expansion, or logistics bottlenecks. Stakeholders advocate for accelerated construction of modular refineries and careful monitoring of coastal import logistics to balance costs and efficiency.

The resumption of petrol importation marks a pragmatic approach to Nigeria’s fuel supply challenges. While it mitigates immediate shortages, the development highlights the urgency of stabilising domestic refining operations and ensuring long-term self-sufficiency.

As the Dangote Refinery progresses with its expansion, market watchers say Nigeria must continue to balance strategic investments in local refining with short-term supply interventions to safeguard energy security and consumer welfare.

By Joseph Iyaji | Akahi News
Joseph Iyaji is a journalist, educator, and founder of Akahi G. International, Akahi Tutors, and Akahi News. Read more about him here.
Akahi News www.akahinews.org

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