The federal government, on Wednesday March 11, suspended the issuance of Premium Motor Spirit (PMS), also known as petrol import licences, for a second consecutive month, as regulators move to enforce rules that restrict imports when domestic supply is sufficient.
This comes as regulators begin enforcing provisions of the Petroleum Industry Act (PIA) that allow imports only when domestic supply falls short.
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), no import licences were issued in February.
The Crude Oil Refineries Association of Nigeria (CORAN) also confirmed that none has been issued so far in March, signalling a shift towards prioritising local output.
The move highlights a stronger intent by the federal government to protect domestic refining and marks a win for the Dangote refinery and other local refineries, which last year sued the NMDPRA and the state oil company, Nigerian National Petroleum Company Limited (NNPCL), seeking to halt fuel imports.
Under the PIA, the regulator may grant import permits only when domestic production is insufficient to meet national demand.
There have previously been arguments that issuing import licences was necessary to maintain competition and prevent market dominance.
Fuel pump prices have surged by more than 54 per cent since the United States and Israel began strikes on Iran last week, pushing global oil markets higher.
NMDPRA spokesperson, George Ene-Ita, blamed the sharp rise in prices on the escalating conflict in the Middle East.
Nigeria’s average daily petrol consumption fell to 56.9 million litres per day in February 2026, down from 60.2 million litres in January.
In February, the Dangote refinery supplied 36.5 million litres of petrol and 8 million litres of diesel to the local market.
According to NMDPRA, these volumes were sufficient, leading to its decision to withhold import licences.
Eche Idoko, spokesperson for CORAN, which has long urged the government to stop issuing import licences that undermine local refiners’ margins, welcomed the regulator’s stance.
“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” Idoko said.
Comments