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NMDPRA Threatens Licence Revocation Over Petrol Under-Dispensing

byStephen Abebor
September 24, 2026
in Business, Economy
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has ordered filling stations nationwide to immediately calibrate and verify their dispensing equipment, warning that persistent under-dispensing of petrol could lead to the revocation of operating licences.

The directive was issued in an industry notice dated Tuesday, September 22, 2026, after the regulator said it had observed incidents of under-dispensing at retail outlets nationwide.

The NMDPRA directed operators to check their dispensers and totalisers to ensure customers receive the full quantity of petroleum products for which they pay. It described under-dispensing as a serious breach of consumer trust and said outlets found with inaccurate equipment or involved in short-measuring customers would be required to take immediate corrective action.

The regulator warned that persistent or serious violations would attract sanctions, “up to and including revocation of the outlet’s licence”, in line with its regulations. It also directed industry groups including the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to notify their members and support compliance.

The warning comes as marketers move to tighten checks at their outlets. IPMAN’s Publicity Secretary, Chinedu Ukadike, said on September 23, 2026, that the association had circulated the NMDPRA notice to members nationwide.

Ukadike said product quality, price and quantity were key factors in retaining customers in Nigeria’s deregulated downstream market. He also acknowledged that sharp practices by some pump attendants could not be completely ruled out and said IPMAN was working to reorient its members and employees.

PETROAN also ordered its members to inspect their dispensing meters nationwide after an emergency meeting of its National Executive Council on Tuesday, September 22, 2026. National President Billy Gillis-Harry said the association had directed members to check their equipment and correct faults.

Gillis-Harry said prolonged use could cause dispensing equipment to develop faults, resulting in either under-dispensing or over-dispensing. He urged motorists to monitor the quantity displayed on fuel pumps and request receipts after transactions.

The latest directive follows increased enforcement by the NMDPRA against stations accused of short-measuring customers. In February 2026, the regulator sealed 11 petrol stations in Rivers State over alleged under-dispensing, faulty pumps and other regulatory breaches under its “Operation One Litre for One Litre” surveillance exercise.

In July 2026, the NMDPRA’s Abeokuta Field Office also sealed two filling stations in Ogun State over alleged under-dispensing and other sharp practices. The regulator said one of the outlets had repeatedly breached its requirements.

The NMDPRA’s latest action places greater responsibility on filling station operators to ensure that their dispensing equipment remains accurate, as motorists continue to pay varying petrol prices across the country.

Tags: Downstream SectorFilling StationsFuel PricesIPMANNigeriaNMDPRAPETROANpetrolPetroleum Marketersunder-dispensing
Stephen Abebor

Stephen Abebor

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