The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to restrict petroleum-product import approvals to transparently verified domestic supply shortfalls, warning that indiscriminate imports could undermine investment in local refining.
In a policy brief released on Sunday, August 30, 2026, and signed by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE raised concerns over the sharp increase in petrol imports despite Nigeria’s expanding domestic refining capacity.
According to figures attributed to NMDPRA’s monthly statistics, average daily Premium Motor Spirit (PMS) imports rose from 5.9 million litres in May 2026 to 18.1 million litres in June, an increase of 206.8%. Imports climbed further to 19.7 million litres per day in July, representing an overall 233.9% increase from May.
Imported petrol accounted for 43.3% of total PMS receipts in July, up from 12.4% in May. However, the increase in imports came as domestic PMS supply declined from 41.5 million litres per day in May to 32.5 million litres in June and 25.8 million litres in July.
The CPPE said the figures warrant a transparent assessment of the relationship between domestic production, inventories and market demand before additional import approvals are granted.
It stressed that it does not oppose imports where they are genuinely required, including during refinery outages, seasonal demand spikes, quality gaps or strategic stock replenishment.
However, the group argued that import permits should only be issued after NMDPRA establishes and publishes the size of any verified supply gap and gives qualified domestic refiners an opportunity to meet the shortfall.
Yusuf cited Sections 317(8) and 317(9) of the Petroleum Industry Act, arguing that the provisions contemplate petroleum-product import licensing in the context of domestic supply shortfalls.
The CPPE warned that indiscriminate import licensing could weaken investment, jobs, foreign-exchange conservation, industrialisation and national energy security.
The debate comes as Nigeria’s refining sector undergoes a major expansion, led by the Dangote Petroleum Refinery and the return of other domestic facilities to operation. The 650,000-barrel-per-day Dangote refinery also exceeded its nameplate capacity during a performance test in June, reaching more than 700,000 barrels per day, according to the company.
To improve transparency, CPPE recommended that NMDPRA publish monthly supply-and-demand balances and formally quantify any residual supply gap before approving significant import volumes.
It also called for import permits to carry clearly defined validity periods and for the regulator to publish regular data on petroleum imports and product evacuation.
The group said a credible supply-gap assessment should consider projected demand, verified domestic production, inventories, committed refinery deliveries, product specifications and logistics constraints.
CPPE further argued that reducing avoidable imports would help conserve foreign exchange and support jobs across engineering, maintenance, haulage, storage, maritime services and retail.
Yusuf cautioned, however, that support for domestic refining should not become a justification for inefficiency, monopoly pricing or poor service, stressing that domestic and imported products should compete under transparent and comparable market conditions.
