Petrol Import Licences Spark Outcry as Experts Warn of Low-Quality Fuel, Threat to Local Refineries
- NMDPRA's decision to resume petrol import licences faces backlash from energy advocates over fuel quality concerns
- Emergency import measures risk undermining consumer safety and eroding trust in Nigeria’s regulatory system
- Advocacy group calls for transparency in licensing criteria to protect local refining investments and industry stability
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The recent decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to resume issuing petrol import licences has sparked strong criticism from energy advocates, who warn that the move could reverse progress in domestic refining and expose Nigerians to substandard fuel.
In a statement released Wednesday, the Energy Transparency and Market Justice Initiative described the development as a policy reversal that threatens recent gains in local supply while reopening the door to low-quality petroleum products.
Source: Getty Images
The regulator had earlier suspended import licences in February, maintaining that local refining capacity could meet national demand. However, supply disruptions linked to geopolitical tensions in the Middle East prompted the approval of fresh licences for six marketers to import about 180,000 metric tonnes of petrol.
Concerns over fuel quality and oversight
While the regulator insists the move is a temporary intervention, ETMJI argues it raises serious concerns about quality control and regulatory consistency in Nigeria’s downstream sector.
Dr. Salako Kareem, who signed the statement, warned that emergency import measures could lead to an influx of petrol that fails to meet the required standards. He likened the approach to a dangerous short-term fix with long-term consequences.
According to Kareem, without strict and transparent quality assurance mechanisms, the reintroduction of imports risks undermining consumer safety and eroding trust in the regulatory system.
Threat to local refining investments
Beyond quality concerns, the group highlighted the potential damage to investor confidence in Nigeria’s growing domestic refining industry.
Kareem noted that inconsistent policy signals could discourage long-term investments, particularly at a time when the country is pushing for energy self-sufficiency.
He argued that shifting between import substitution and import expansion creates uncertainty for stakeholders who have committed resources to building local refining capacity. Such unpredictability, he said, could slow progress and weaken the sector’s overall development.
Economic implications and FX pressure
ETMJI also pointed to the broader economic risks of renewed import dependence. Increased fuel imports could place additional pressure on foreign exchange reserves, while higher landing costs may ultimately be passed on to consumers.
The group stressed that external shocks should not justify what it called a “regulatory backslide,” urging authorities to focus instead on strengthening domestic supply chains and addressing inefficiencies in fuel distribution.
Call for transparency and long-term strategy
The advocacy group is calling on the NMDPRA to disclose the criteria used in issuing the new licences, including safeguards to prevent the entry of substandard products into the market.
It also urged the federal government to align regulatory actions with broader economic and energy transition goals, warning that inconsistent policies could undermine public trust and delay sectoral progress.
Kareem emphasised that sustainable solutions lie in improving logistics, enforcing strict quality standards, and supporting local refiners to operate at full capacity.
Source: Getty Images
Balancing supply and standards
As Nigeria navigates ongoing energy challenges shaped by both domestic constraints and global uncertainties, the debate over fuel imports underscores a deeper issue: balancing immediate supply needs with long-term industry stability.
Stakeholders agree that ensuring adequate fuel availability is critical, but insist it must not come at the cost of quality, investor confidence, or the country’s ambition for self-reliance in petroleum production.
Dangote Refinery threatens full export over import licence
Legit.ng earlier reported that Nigeria’s fragile fuel supply outlook has come under renewed pressure as the Dangote Petroleum Refinery considers exporting all its refined products, including petrol, diesel, and aviation fuel.
The move, if implemented, could tighten domestic supply and revive fears of fuel scarcity across the country.
Sources within the 650,000-barrels-per-day facility in Lekki, Lagos, say the option is being weighed in response to the continued issuance of petrol import licences, despite official claims to the contrary.
Source: Legit.ng
