Nigeria has resumed the issuance of petrol import licences after weeks of maintaining that domestic refining capacity was sufficient to meet national demand, a decision prompted by fresh supply concerns linked to geopolitical tensions in the Middle East.
Industry sources indicate that the Nigerian Midstream and Downstream Petroleum Regulatory Authority approved the importation of about 180,000 metric tonnes of Premium Motor Spirit by six marketing firms. Each firm is expected to import roughly 30,000 metric tonnes, translating to over 40 million litres per shipment.
Earlier in March, the regulator had paused the approval of petrol import permits, citing improved output from local refineries. At the time, domestic supply reportedly covered the bulk of Nigeria’s daily consumption, leaving imports at minimal levels. However, officials say the emerging supply gap required swift intervention to prevent shortages.
At the same time, executives at the Dangote Petroleum Refinery have raised concerns over foreign exchange losses tied to the Federal Government’s naira-for-crude framework. A senior official at the refinery explained that the arrangement was designed for the facility to refine crude supplied locally and sell refined products domestically in naira.
Instead, the refinery is reportedly supplying more petroleum products to the Nigerian market than the volume of crude it receives from the Nigerian National Petroleum Company Limited, limiting its opportunity to export refined products and earn foreign currency.
During a televised interview, the refinery’s chief executive, David Bird, said the plant currently receives only about five crude cargoes monthly instead of the 13 to 15 earlier agreed.
This, he noted, has forced the refinery to source Nigerian crude from international markets at higher prices, incurring additional freight and logistics costs that influence pump prices. Bird clarified that the naira-for-crude policy was introduced to protect Nigeria’s foreign exchange stability rather than provide financial advantages to the refinery, stressing that crude is still purchased at global benchmark rates.
Despite the crude supply gap, the 650,000 barrels-per-day refinery is said to be operating at full capacity and supplying both domestic and regional markets.
Industry bodies, including the Crude Oil Refinery Owners Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria, have urged the government to prioritise crude supply to domestic refineries as a long-term solution to rising fuel prices.
They argue that petrol prices are influenced by international crude oil prices, exchange rate volatility, and high logistics costs, and that increasing crude allocation to local refineries under fair pricing terms would significantly ease market pressure.
Retailers warned that rising pump prices are already affecting transportation costs, food prices, and overall living expenses, calling for temporary relief measures and structural reforms to the supply chain.
Both groups also recommended reviving operations at the Port Harcourt refinery, supporting modular refineries, reducing logistics bottlenecks, and accelerating the adoption of alternative fuels such as compressed natural gas.
Energy analysts note that the renewed import approvals are likely a short-term stabilisation measure rather than a return to heavy reliance on foreign fuel. However, they warn that without a predictable and fairly priced crude supply framework for local refineries, Nigeria may continue to face supply vulnerabilities whenever global disruptions occur.
