FG Revokes Petrol Import Licences of MRS, Other Importers, Giving Dangote Refinery Strong Boost
- Nigeria suspends petrol import licenses, bolstering Dangote Refinery's dominance in the fuel supply market
- Nearly 64% of Nigeria's petrol demand now is met by Dangote Refinery as imports decline dramatically
- Dangote Group is planning a $750 million expansion to increase refinery capacity, aiming to revolutionise Nigeria's energy sector
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s Federal Government has suspended the issuance of petrol import licences to major oil marketers, a move that significantly strengthens the position of Aliko Dangote and his massive refinery project.
The decision effectively limits the importation of Premium Motor Spirit (PMS), commonly known as petrol, and prioritises locally refined fuel supply.
Source: UGC
The development is widely seen as a major policy shift aimed at encouraging domestic refining capacity and reducing Nigeria’s long-standing dependence on imported petroleum products.
Dangote Refinery now dominates supply
New data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority shows that nearly all the petrol supplied across Nigeria in February came from the Dangote Refinery.
The refinery, which has a processing capacity of 650,000 barrels of crude oil per day, is currently operating at around 78 per cent capacity. During the period under review, it supplied approximately 64 per cent of Nigeria’s total petrol demand.
The remaining supply gap, estimated at roughly 20 million litres per day, was covered using fuel stocks previously imported into the country.
Under the new regulatory framework, petrol import permits will only be granted if domestic production cannot meet national demand.
According to NMDPRA spokesperson George Ene-Ita, Nigeria’s current refining output is sufficient to justify the suspension of fresh import licences, a report by Business Insider Africa said.
Marketers affected by the policy
Several oil marketing companies that previously imported petrol into Nigeria have been affected by the government’s new position.
Companies such as TotalEnergies SE, MRS Oil Nigeria Plc, and Conoil Plc were among the firms responsible for roughly 25 per cent of petrol imports in January.
With their import licences now suspended, these marketers will largely depend on locally refined fuel, particularly from the Dangote refinery, to maintain supply across their distribution networks.
The move marks one of the most significant shifts in Nigeria’s downstream petroleum market in decades.
A Dispute that reached the courts
The latest policy development also follows a previous legal dispute between Dangote’s refinery and industry regulators.
Earlier, Dangote had filed a lawsuit challenging the approval of petrol import licences granted to NNPC Limited and several private firms. The billionaire argued that allowing continued fuel imports undermined Nigeria’s growing domestic refining capacity.
Among the companies listed in the suit were AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd.
The refinery also demanded ₦100 billion in damages, claiming regulators continued to approve imports of diesel and aviation fuel despite available local supply.
However, the case was eventually withdrawn after relations between the refinery and government authorities improved.
Massive expansion plans ahead
Dangote Group is now pushing ahead with plans to significantly expand its refining and petrochemical operations.
The conglomerate recently signed two major agreements worth $750 million with XCMG Group and Engineers India Limited.
The expansion project is expected to dramatically increase the refinery’s capacity to about 1.4 million barrels per day, potentially making it one of the largest refining complexes in the world.
Source: UGC
Industry analysts say the expansion could transform Nigeria’s energy sector by eliminating the country’s reliance on imported fuel and positioning it as a major exporter of refined petroleum products in Africa.
If successfully implemented, the shift toward local refining may mark the beginning of a new era for Nigeria’s petroleum industry, with the Dangote refinery at the centre of the transformation.
Petrol landing cost falls below Dangote Refinery price
Legit.ng earlier reported that fresh data from the Major Energies Marketers Association of Nigeria (MEMAN) has revealed that the landing cost of imported petrol has fallen significantly below the price offered by the Dangote Petroleum Refinery, triggering a fresh dispute between fuel importers and the refinery.
According to the data, the landing cost of imported Premium Motor Spirit (PMS) stood at N809.37 per litre, about N64 cheaper than Dangote refinery’s N874 per litre gantry price.
The figures surfaced amid rising global tensions following escalating hostilities in the Middle East involving the United States, Iran, Israel and other countries.
Source: Legit.ng
