Oil marketers have defended the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to resume issuing petrol and diesel import licences, describing it as a practical step to bridge supply gaps and avert fuel scarcity.
According to industry operators, the move is driven by current market realities, as domestic refineries are still unable to consistently meet Nigeria’s total fuel demand. They stressed that the policy is not intended to undermine local refining efforts but to ensure steady product availability while refineries continue to stabilise and expand.
Market participants explained that the downstream sector prioritises reliability and predictability of supply. Allowing controlled and transparent importation, they argue, helps keep the market balanced and liquid during periods when local output falls short.
Industry insights indicate that large-scale refinery upgrades and operational adjustments have limited the ability of local plants to fully satisfy national demand at all times. As a result, importation is viewed as a temporary gap-management tool rather than a reversal of Nigeria’s domestic refining strategy. Without such support, marketers warn that supply disruptions could quickly lead to scarcity and price volatility.
Recent speculation about renewed fuel importation followed reports that import permits could resume in early 2026, marking the first approvals of the year. Previously, imports were restricted to volumes required to cover domestic production shortfalls. Delays in issuing licences were also linked to regulatory transitions and concerns about tightening fuel supply amid changing market conditions.
Stakeholders note that Nigeria’s daily fuel consumption leaves little room for interruptions. Demand continues regardless of refinery maintenance, logistics challenges, or crude supply constraints, making immediate gap coverage critical. In this context, importation acts as a buffer to maintain supply stability.
Meanwhile, local refinery operators maintain that they do not import finished petroleum products, stating instead that they bring in unfinished feedstocks that undergo extensive processing locally before becoming usable fuels. These materials, they say, cannot be consumed directly without further refining.
The renewed import window highlights Nigeria’s ongoing dependence on foreign refined products, despite progress toward local self-sufficiency. Continued import reliance places pressure on foreign exchange, contributes to higher logistics costs, and can ultimately push up pump prices. Coastal transportation alone is estimated to add significant costs per litre, which may be passed on to consumers.
While fuel importation may be unavoidable in the short term, analysts say the situation underscores the urgency of stabilising and expanding domestic refining capacity to reduce long-term exposure to external supply shocks and align with national energy policy goals.
