Industry Group Warns NMDPRA's New Import Licences Threaten Local Refineries
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has faced sharp criticism from an industry advocacy group over its decision to resume issuing petrol import licences. The Energy Transparency and Market Justice Initiative (ETMJI) warns that this move could undermine domestic refining efforts and expose the Nigerian market to substandard fuel, potentially reversing recent gains in local supply.
Policy Reversal Risks and Market Concerns
In a statement released on Wednesday, ETMJI described the development as a significant policy reversal that risks weakening Nigeria's progress toward self-sufficiency in fuel production. The regulator had previously suspended import licences, citing improved domestic refining capacity, but has now granted fresh approvals to six marketers to import approximately 180,000 metric tonnes of petrol. This decision follows supply disruptions linked to tensions in the Middle East, with NMDPRA framing it as a temporary measure to stabilise supply.
However, ETMJI argues that the decision reflects deeper inconsistencies in regulatory direction. Dr Salako Kareem, who signed the statement, expressed concern that reopening the import window without stringent safeguards could allow lower-quality petroleum products into the market. He emphasised that emergency interventions relying on imports risk creating long-term challenges for consumers and the regulatory system.
Threats to Investment and Economic Stability
The group highlighted that renewed import activity could revive longstanding issues such as product adulteration and regulatory loopholes exploited by market operators. ETMJI also warned that this move sends mixed signals to investors in domestic refining, at a time when Nigeria is actively seeking to reduce reliance on imported fuel. According to the group, policy inconsistency—shifting between import substitution and renewed importation—could discourage long-term investment and planning within the sector.
Dr Kareem stated, "This creates uncertainty for investors who have committed resources to local refining capacity," adding that stable and predictable policies are essential for industry growth. Beyond quality concerns, the group pointed to potential economic effects, noting that increased imports could place additional pressure on foreign exchange reserves and raise landing costs, which are often passed on to consumers.
Calls for Clarity and Sustainable Solutions
ETMJI called on the NMDPRA to provide clarity on the criteria used in issuing the new licences and the safeguards in place to ensure compliance with fuel quality standards. The group urged the federal government to align regulatory decisions with broader energy transition and economic diversification goals, warning that inconsistent policy direction could erode public trust.
It argued that addressing structural inefficiencies within the domestic supply chain, including logistics and distribution, would offer a more sustainable solution than reverting to imports. As Nigeria navigates ongoing pressures in its energy sector, this debate underscores a central challenge: balancing immediate supply needs with long-term goals of self-sufficiency and regulatory credibility.
For stakeholders, the effectiveness of this latest intervention will depend not only on its ability to stabilise supply but also on whether it preserves market standards and supports the growth of domestic refining capacity.
