Nigeria's petroleum regulator has introduced new merit-based criteria for granting petrol import licences, moving towards a more transparent system as domestic refineries dramatically increase their share of fuel supply. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said import licences would be issued only on the basis of published merit criteria and transparent assessments of supply gaps, according to remarks by the Authority's Chief Executive, Rabiu Umar, at the 2026 OTL Africa Downstream Energy Week in Lagos. Umar said the door would remain open for eligible importers but the process would be guided by clear criteria and verifiable assessments to ensure fair competition in the downstream petroleum market.
The shift towards local refining has been striking. Domestic refineries now account for about 75 per cent of petrol supplied to Nigeria, with imports more than halving within a year, the NMDPRA said. A year earlier, more than half of the petrol in Nigerian tanks was imported, but by last month, three litres in every four were refined domestically. The change reflects increased domestic refining capacity, and the regulator attributed it to helping Nigeria maintain fuel supply despite disruptions in global energy markets, including crude oil reaching around one hundred dollars a barrel amid Middle East tensions.
The NMDPRA chief warned, however, that the country's growing reliance on domestic refining should not breed complacency. He noted that a large proportion of local supply currently came from one major refinery, which operated above its nameplate capacity in September. Energy security required a diverse supply base, making it necessary to support smaller refineries, revive government-owned refineries and retain import access where domestic production falls short of demand. The authority said it would continue supporting modular refineries and work with the Nigerian National Petroleum Company Limited towards returning state-owned refineries to operation.
The NMDPRA is also overhauling its licensing framework to ease doing business in the sector. The regulator is reviewing all licences it issues to reduce administrative delays, with some currently requiring annual renewal potentially being extended to five-year periods where appropriate. Umar said unnecessary approval steps would be removed and operators would eventually obtain licences remotely without visiting NMDPRA offices, provided they met requirements. The authority has signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to coordinate enforcement and strengthen consumer protection, and committed to consulting stakeholders before introducing new regulations rather than adopting sudden measures that could create uncertainty.
The regulator clarified that its role under law was not to set petroleum product prices but to ensure fair market competition and transparent transactions. Umar said the NMDPRA had not recorded nationwide petroleum supply disruptions in the past couple of years and that widening the supply base and making market information available to stakeholders would help sustain gains. He added that the authority was working to strengthen competition through consultations on proposed regulations to prevent anti-competitive practices in the midstream and downstream petroleum sectors.