Stakeholders Caution Against Return To Petrol Import Dependence

Stakeholders in Nigeria’s energy sector have cautioned against a renewed reliance on petrol imports following the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to issue fresh import licences.

The caution was issued by the Energy Transparency and Market Justice Initiative (ETMJI), which described the move as a potential setback to efforts aimed at strengthening domestic refining capacity and achieving energy self-sufficiency.

The NMDPRA had earlier suspended the issuance of petrol import licences in February, citing improved local refining output. However, the regulator recently approved licences for six marketers to import about 180,000 metric tonnes of petrol following supply disruptions linked to the Middle East crisis.

While the agency said the measure was temporary and intended to stabilise supply, stakeholders expressed concern that such interventions could gradually return the country to import dependence.

ETMJI, in a statement signed by its spokesman, Salako Kareem, warned that reopening the import window could expose the Nigerian market to substandard petroleum products if not properly regulated.

He noted that reliance on imports has historically been associated with weak quality control, higher costs and pressure on foreign exchange.

“What may appear as a short-term solution could create long-term challenges for the sector. Without strict safeguards, increased imports could undermine market integrity and consumer protection,” he said.

Kareem added that the decision sends conflicting signals to investors in local refining, particularly at a time when the country is seeking to reduce dependence on imported fuel.

According to him, consistent policy direction is critical to sustaining investor confidence and ensuring the growth of domestic refining capacity.

He urged the regulator to focus on strengthening local supply chains, improving distribution networks and enforcing quality standards, rather than resorting to import-based interventions.

The group also called for transparency in the issuance of import licences and the establishment of robust monitoring systems to prevent the influx of substandard products.

ETMJI stressed that Nigeria’s long-term energy security depends on building a resilient domestic refining industry supported by clear and consistent policies, warning that a return to import dependence could undermine progress in the sector.