NMDPRA Approves 6 Petrol Import Permits as Dangote Refinery Dominates Nigeria’s Fuel Supply

• The NMDPRA has approved import permits for six marketers to bring in about 30,000 metric tonnes of petrol each
• Industry data showed the Dangote Petroleum Refinery accounted for roughly 92% of Nigeria’s petrol supply in February
• Analysts say the permits may help maintain supply stability as Nigeria transitions toward increased local refining

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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved fresh permits for the importation of petrol by six depot owners and petroleum marketers, a move industry insiders say is aimed at sustaining balance in Nigeria’s fuel supply market.

According to industry sources cited by Petroleumprice, the regulator recently issued the approvals to six importers, with each authorised to bring in about 30,000 metric tonnes of Premium Motor Spirit (PMS), commonly known as petrol.

Dangote refinery supplies 92% petrol

The development comes as discussions intensify within the downstream sector following reports that the Dangote Petroleum Refinery supplied roughly 92% of Nigeria’s petrol in February.

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Available industry data showed that local refining produced about 36.5 million litres of petrol daily during the month, while imported volumes accounted for around 3 million litres per day. This brought the country’s estimated total daily supply to nearly 39.5 million litres.

At present, the Dangote refinery is the only facility in Nigeria producing petrol, as many modular refineries in the country concentrate mainly on diesel output.

First import licences granted in 2026

A senior industry source familiar with regulatory operations explained that no importer had been granted petrol import permits under the current leadership of the NMDPRA until the latest approvals were issued.

The source suggested the decision could indicate a policy shift designed to preserve supply flexibility as the downstream market evolves.

Nigeria has traditionally depended on petrol imports due to the prolonged shutdown of government-owned refineries located in Port Harcourt, Warri and Kaduna.

The policy shift has effectively placed the Dangote Petroleum Refinery at the heart of the country’s fuel supply chain, giving the facility a dominant position in a market estimated to be worth about N14.4 trillion annually.

Dangote refinery cuts imports

However, the start of operations at the Dangote refinery has significantly cut the country’s reliance on imported fuel and altered the supply structure in Nigeria’s downstream petroleum industry.

Industry watchers say the latest permits may signal the government’s attempt to maintain supply stability while the country gradually transitions toward stronger domestic refining capacity.

Experts warn of market concentration

Despite the progress in domestic refining, some analysts warn that the sudden concentration of supply could create long-term challenges.

Energy economist Wumi Iledare described the suspension of petrol imports as a strong policy signal in Nigeria’s downstream oil sector. However, he cautioned that abrupt regulatory shifts can sometimes encourage strategic behaviour among market players.

According to him, such signals could lead to precautionary stockpiling, opportunistic pricing, or competition for logistical advantages within the distribution network.

Iledare stressed that regulators must provide clear guidance and ensure that local refining, distribution infrastructure, and pricing mechanisms are strong enough to consistently meet national demand.

Dangote explains why fuel prices may remain high

Legit.ng earlier reported that the managing director and chief executive officer of Dangote Petroleum Refinery, David Bird, has said petrol prices may not decline even as the refinery operates at full capacity, citing volatility in global oil markets and rising supply chain costs.

Bird made the remarks during a media chat on Monday, March 9, 2026, explaining that the refinery operates within the international commodities market, which directly influences the cost of crude oil and refined products.

According to him, the refinery purchases crude oil at global benchmark prices, including crude sourced locally under the crude-for-naira programme.