The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved petrol import permits for multiple companies, covering about 830,000 metric tonnes, ahead of the fourth quarter of 2026. This move aims to ensure a steady supply of petrol and prevent gaps in the market during the critical end-of-year period. The approvals were issued on September 18, and companies granted permits include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil, and Bono Energy.
The latest approvals come amid an ongoing legal dispute between Dangote Petroleum Refinery and the NMDPRA over the continued issuance of petrol import licences. Dangote Refinery, owned by businessman Aliko Dangote, had filed a lawsuit against the Attorney-General of the Federation, challenging fuel import licences issued to oil marketers and the Nigerian National Petroleum Company Limited (NNPC Ltd). The refinery argued that the licences threatened its operations and were contrary to provisions of the Petroleum Industry Act (PIA).
Dangote Refinery, with an installed capacity of 650,000 barrels per day, is Africa's largest single-train refinery and was expected to significantly reduce Nigeria's dependence on imported refined petroleum products. However, petrol imports have continued as the refinery ramps up production and distribution, while some industry operators maintain that domestic output has yet to fully meet national demand. The refinery has repeatedly pushed for local marketers to source petroleum products from domestic refineries rather than rely on imports.
The NMDPRA's decision to approve petrol import permits has sparked concerns over the country's energy security and the operations of Dangote Refinery. The regulator's former leadership, under Farouk Ahmed, resisted measures that could create a monopoly, arguing that allowing a single refinery to dominate the market could undermine competition. The disagreement contributed to a public dispute between Dangote and Ahmed, with Dangote accusing the former regulator of corruption.
The legal dispute between Dangote Refinery and the NMDPRA is ongoing, with the current case challenging the continued issuance of petrol import licences scheduled for further hearing on October 7. Dangote Refinery is seeking to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing licences for the importation of petroleum products. The marketers named in the suit have argued that competition is essential to the health of Nigeria's economy and the viability of the petroleum sector.
The NMDPRA's spokesperson, George Ene-Ita, declined to comment on the legal dispute, citing the ongoing court proceedings. The approvals for petrol imports come as tensions in the Middle East continue to disrupt global energy markets, keeping crude oil prices elevated and raising concerns about the cost of petroleum supplies. Nigeria has historically depended heavily on imported petrol, largely due to the poor performance of its state-owned refineries.
The country's energy security and the operations of Dangote Refinery will be closely watched in the coming months, as the dispute between the refinery and the NMDPRA continues. Three key points have emerged: the NMDPRA has approved 830,000-tonne petrol imports for Q4 2026; Dangote Refinery is challenging the continued issuance of petrol import licences; and the country's energy security is a major concern amid ongoing disputes and disruptions in global energy markets.
Key points
- The NMDPRA has approved petrol import permits covering 830,000 metric tonnes for multiple companies.
- Dangote Refinery is challenging the continued issuance of petrol import licences, citing concerns over its operations and the country's energy security.
- The country's energy security is a major concern amid ongoing disputes and disruptions in global energy markets.
