The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced new conditions for issuing petrol import licences, saying approvals will depend on published eligibility criteria and verified shortages in domestic supply.
The authority’s Chief Executive, Rabiu Umar, disclosed this at the 2026 OTL Africa Downstream Energy Week in Lagos, where he said the new approach would promote transparency and fair competition as local refineries supply a growing share of Nigeria’s petrol needs.
Umar said import licences would remain available to qualified operators, but applications would be assessed using clear standards and an open process for determining whether additional supplies were needed.
He said the criteria for approving imports would be made public, allowing stakeholders to scrutinise how supply gaps were identified and licences granted.
The policy comes as domestic refineries account for about 75 per cent of petrol supplied in Nigeria, according to the regulator. Umar said imports had fallen by more than half within a year as local refining capacity expanded.
He attributed the shift to increased domestic production, which he said had helped Nigeria maintain fuel availability despite disruptions in the international energy market and rising crude oil prices.
However, Umar cautioned against relying too heavily on a single refinery, noting that much of the country’s current petrol supply comes from one major facility, which operated above its installed capacity in September.
He said Nigeria needed a broader range of supply sources to strengthen energy security. This includes supporting modular refineries, working with the Nigerian National Petroleum Company Limited to restore government-owned refineries and retaining access to imported fuel when local production cannot meet demand.
The NMDPRA chief also clarified that the authority does not determine petrol prices. Under the Petroleum Industry Act, he said, prices are set by market forces, while the regulator is responsible for ensuring fair competition and transparent transactions.
He added that the authority had not recorded nationwide fuel supply disruptions in the preceding couple of years, but stressed that maintaining reliable supply would require greater market diversity and better access to information.
As part of efforts to improve competition, the regulator is consulting stakeholders on proposed rules to curb anti-competitive practices in the midstream and downstream petroleum sectors. It has also signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to coordinate enforcement and improve consumer protection.
Umar said the authority would engage businesses and other stakeholders before introducing regulations that could affect their operations, arguing that predictable and transparent rules were important for attracting investment.
The regulator is also reviewing its licensing procedures to reduce delays and make it easier for companies to operate. Under the proposed changes, some licences that currently require annual renewal could be extended to five years where appropriate.
Umar said the authority also planned to remove unnecessary approval stages and enable operators to complete licensing processes remotely, provided they meet the relevant requirements.
He added that product quality would remain a priority to protect consumers from substandard petroleum products that could damage equipment or pose safety risks.
