- The Federal Government lifted its fuel import ban, granting six new PMS licences to stabilise supply amid Middle East tensions
- Dangote Refinery faced crude feedstock shortfalls under the naira-for-crude policy, prompting operational and FX challenges
- Analysts urged improved domestic crude allocation, policy review, and strategic planning to protect Nigeria’s fuel supply and economy
The Federal Government has lifted its ban on fuel imports, granting six new licences for the importation of Premium Motor Spirit (PMS), following concerns over supply amid geopolitical tensions in the Middle East. The move marks a sharp reversal of Nigeria’s recent policy aimed at reducing reliance on imported fuel.
According to a report by S&P Global obtained on Wednesday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved licences for about 180,000 metric tonnes of petrol. The importers include Bono Energy, Pinnacle, AYM Shafa, Matrix, A.A. Rano, and Nipco, each expected to import approximately 30,000 metric tonnes, equivalent to 40.5 million litres per company, or a total of roughly 243 million litres.
The decision comes weeks after the regulator had insisted that domestic refining capacity, particularly from local refineries like the Dangote Petroleum Refinery, was sufficient to meet Nigeria’s demand. However, a sudden supply gap triggered by Middle East geopolitical tensions prompted the reversal.
Energy analyst Jeremiah Olatide of Petroleumprice.ng confirmed that import permits have begun issuance, noting that while local refining still dominates, imports are necessary to stabilise the market. He warned that energy insecurity could negatively impact Nigeria’s economy.
Meanwhile, the Dangote Petroleum Refinery continues to grapple with foreign exchange losses under the naira-for-crude arrangement. A senior management official explained that the refinery supplies more refined products domestically than the crude it receives under the deal, limiting potential dollar earnings that could have been realised through exports.
Dangote Refinery CEO David Bird stated that the facility currently receives only five cargoes of crude monthly instead of the expected 13–15, forcing the refinery to import feedstock at premium international prices. He clarified that the naira-for-crude policy was designed to stabilise Nigeria’s foreign exchange market, not to provide financial gains for the refinery, and emphasised that operations are unsubsidised.
Bird urged the government to improve crude allocation to local refineries and invest in long-term strategic planning, including national reserves, to strengthen supply chain resilience. Olatide also called for a review of the naira-for-crude policy and consideration of subsidised crude to protect pump prices from global shocks.
The development signals that while domestic refining capacity has increased, Nigeria’s fuel supply remains sensitive to both international market fluctuations and internal feedstock allocation.