LAGOS: Nigeria has suspended gasoline import licences for a second month, supporting domestic refining under the Petroleum Industry Act (PIA).
No licences were issued in February, and none have been granted so far in March, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Crude Oil Refineries Association of Nigeria (CORAN).
The policy is widely seen as shielding local refiners, particularly the Dangote Refinery, by restricting imports and allowing domestic producers to gain greater market share.
This move follows Dangote Refinery’s lawsuit last year to block imports.
The PIA stipulates that import permits may only be granted when local production cannot meet national demand.
Because February’s supply was deemed sufficient, with Dangote Refinery delivering 36.5 million litres of petrol and 8 million litres of diesel to the market, regulators did not issue import licences.
Fuel pump prices, however, surged by more than 54% after U.S. and Israeli strikes on Iran, an event that rattled global oil markets.
NMDPRA spokesperson George Ene Ita explained that the price spike was a direct result of the escalating tensions in the Middle East.
Nigeria’s average daily petrol consumption fell to 56.9 million litres in February from 60.2 million litres in January.
According to CORAN, the regulator’s refusal to issue new import licences directly benefits local refiners by strengthening their margins, highlighting the tangible effects of the policy.
“Protecting local production is positive; now, we must keep up the momentum,” said CORAN spokesperson Eche Idoko.
