The Energy Transparency and Market Justice Initiative (ETMJI) has faulted the decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to resume issuing licences for petrol imports, warning of potential risks to Nigeria’s domestic refining sector.
In a statement signed by Salako Kareem, the group described the move as a policy reversal that could undermine recent gains in local fuel production and expose the market to substandard petroleum products.
The NMDPRA had previously suspended the issuance of import licences in February after stating that domestic refining capacity was sufficient to meet national demand. However, following supply disruptions linked to geopolitical tensions in the Middle East, the regulator approved fresh licences for six marketers to import approximately 180,000 metric tonnes of petrol to stabilise supply.
Reacting to the development, ETMJI said the decision highlights inconsistencies in regulatory direction and could weaken investor confidence in Nigeria’s refining industry.
“What we are witnessing is a deeply flawed response to a complex problem… it introduces far more dangerous consequences for consumers, the market, and the integrity of the regulatory system,” Kareem said.
He warned that increased reliance on imports without strict quality control measures could open the door to inferior fuel products and market abuses.
The group also argued that recurring fuel scarcity in Nigeria is often linked to distribution inefficiencies rather than supply shortages, urging regulators to address structural challenges instead of resorting to import-based solutions.
“This policy direction undermines the confidence of investors who have committed resources to building domestic refining capacity,” Kareem said.
“You cannot, on one hand, advocate self-sufficiency and, on the other, reopen the gates to imports at the slightest disruption.”
ETMJI further cautioned that renewed import activity could exert pressure on Nigeria’s foreign exchange reserves, with higher landing costs potentially passed on to consumers.
According to the group, short-term import measures fail to address deeper issues within the petroleum supply chain and risk reversing progress made toward local capacity development.
“What is required is a disciplined commitment to strengthening local production, enhancing regulatory oversight and ensuring that every litre of fuel consumed in this country meets strict quality benchmarks,” Kareem added.
The group also raised concerns about the possibility of product adulteration if oversight mechanisms are not strengthened, noting that regulatory loopholes could be exploited by unscrupulous operators.
ETMJI called on the NMDPRA to disclose the criteria used in granting the new import licences and urged the Federal Government to align its regulatory actions with broader energy transition and economic diversification goals.
It warned that inconsistent policies could erode public trust and slow progress in Nigeria’s petroleum sector.
