The Federal Government has lifted its ban on fuel imports, granting six new licenses for the importation of Premium Motor Spirit (petrol) to address a sudden supply gap in Nigeria’s fuel market. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licenses for the importation of approximately 180,000 metric tonnes of petrol, with each marketer expected to import about 30,000 metric tonnes.
Currently, the Dangote Petroleum Refinery operates at its full installed capacity of 650,000 barrels per day. However, it has been receiving only five cargoes of crude monthly, far below the expected 13 to 15 cargoes. This discrepancy has raised concerns among oil marketers and domestic crude refiners, who have called on the Federal Government to boost crude supply to local refineries.
The naira-for-crude deal, designed to stabilize Nigeria’s foreign exchange market, has been a focal point in discussions surrounding the fuel supply situation. A senior management official of the Dangote Group stated, “The naira-for-crude deal was conceived by His Excellency, the President,” highlighting the government’s involvement in addressing the fuel supply challenges.
Jeremiah Olatide, a spokesperson for the NMDPRA, confirmed that the decision to issue import licenses was made to tackle the supply gap. He noted, “Yes, it’s true. NMDPRA has begun issuing import permits; the number of permits issued lately is relatively low, which shows local refining still dominates, but we need to stabilize the market through imports.” This statement underscores the ongoing reliance on local refineries while acknowledging the necessity of imports to meet demand.
In February 2026, local refineries supplied 36.5 million litres of petrol per day, with imports contributing only 3 million litres. This stark contrast illustrates the significant role that local production plays in Nigeria’s fuel market, yet the recent import licenses indicate a shift in strategy to ensure adequate supply.
David Bird, another industry expert, emphasized that the naira-for-crude deal is not solely beneficial to the Dangote refinery, stating, “The naira-for-crude deal is not there to benefit the Dangote refinery. That is a fundamental misunderstanding.” His remarks reflect the complexities of the current fuel supply dynamics and the broader implications for the industry.
As the Federal Government navigates these challenges, observers are keenly watching how the reopening of fuel imports will impact the market. The NMDPRA’s action is seen as a temporary measure to address immediate supply concerns, but the long-term effects on local refineries and the overall fuel market remain to be seen. Details remain unconfirmed regarding the exact timeline for the imports and how they will be integrated into the existing supply chain.
With the Dangote refinery operating at full capacity yet struggling with crude supply, the government’s decision to reopen fuel imports marks a significant shift in policy aimed at stabilizing Nigeria’s fuel market amid ongoing geopolitical tensions and supply uncertainties.