The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced stricter conditions for issuing petrol import licenses, insisting that approvals will depend on transparent assessments of domestic supply shortages and published merit-based criteria.

The development comes as local refineries expand their share of Nigeria's petrol market, reducing dependence on imported fuel and reshaping competition in the downstream petroleum sector.

NMDPRA Chief Executive Rabiu Umar disclosed the new policy while delivering a keynote address at the 2026 OTL Africa Downstream Energy Week in Lagos, themed Secure Energy, Shared Prosperity.

NMDPRA introduces stricter petrol import license conditions

According to Punch, Umar explained that petrol imports would remain permitted, but licenses would only be granted where operators met established requirements and verifiable supply gaps justified additional imports.

"For our importers, the door stays open. Import licences will be issued only on the basis of published merit-based criteria and also a transparent shortfall determination that everybody can audit," he said.

The regulator maintained that the approach would protect competition while preventing unnecessary imports from undermining Nigeria's expanding domestic refining industry.

Local refineries capture Nigeria's petrol market

According to Umar, domestic refineries supplied approximately 75 per cent of Nigeria's petrol requirements in September 2026, representing a significant shift from the country's previous dependence on imported petroleum products.

"A year ago, more than half of the petrol in Nigerian tanks was imported. Last month, three litres in every four were refined here," he stated.

He attributed the improvement to increased domestic refining capacity, which has strengthened fuel availability despite volatility in international crude oil markets.

However, Umar warned that Nigeria's reliance on one major refinery remained a potential supply risk.

He stressed the importance of supporting modular refineries, rehabilitating government-owned facilities and maintaining alternative import channels to prevent disruptions.

Marketers reveal fresh petrol landing cost

Meanwhile, the Major Energies Marketers Association of Nigeria (MEMAN) has reported a decline in the estimated landing cost of imported petrol to N1,283.81 per litre, from N1,292.88 previously.

The latest figures, published in its October 21 energy bulletin, represent a reduction of N9.07 per litre, approximately 0.7 per cent.

The new landing cost is N66.19 below Dangote Refinery's reported gantry price of N1,350 per litre.

It is also lower than marketers' ex-depot prices of N1,348 to N1,358 per litre, Vanguard reports.

Despite the reduction, motorists in Lagos and Abuja were reportedly paying between N1,370 and N1,429 per litre, highlighting the continued pressure on consumers.

Landing costs exclude some distribution expenses and retail margins, meaning cheaper imports do not automatically translate into lower pump prices.

NMDPRA clarifies position on petrol prices

Addressing concerns about petroleum pricing, Umar maintained that the Petroleum Industry Act does not empower NMDPRA to fix petrol prices.

Instead, he explained, the regulator must ensure fair competition, transparent transactions and compliance with established market rules.

He disclosed that NMDPRA had signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission to strengthen enforcement and consumer protection.

The authority is also consulting stakeholders on regulations designed to discourage anti-competitive practices.

Petrol licensing reforms target investment growth

Umar further announced plans to simplify licensing procedures, reduce bureaucratic delays and improve regulatory efficiency.

Under the proposed reforms, certain licenses currently renewed annually could become valid for five years, subject to applicable requirements.

The authority also intends to introduce more remote licensing services, allowing qualified operators to secure approvals without visiting its offices.

Umar maintained that predictable regulations, stronger domestic refining capacity and transparent import arrangements would be essential to sustaining Nigeria's fuel supply and attracting investment.

For consumers, however, the immediate concern remains whether increased local production and declining import costs will eventually deliver meaningful reductions in petrol prices.