Nigeria Suspends Gasoline Import Licenses to Boost Domestic Refining

Nigeria has halted gasoline import licenses as regulators enforce rules prioritizing domestic refining, signaling a shift that could reshape fuel supply dynamics in Africa’s largest oil market.

(Reuters) — Nigeria has suspended the issuance of gasoline import licenses for a second straight month as regulators begin enforcing provisions of the Petroleum Industry Act (PIA) that only allow imports when the African country's domestic supply falls short.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show no import licenses were issued in February, while the Crude Oil Refineries Association of Nigeria (CORAN) confirmed that none has been issued so far in March, signaling a shift towards prioritizing local output.

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This shift highlights a stronger intent by Nigerian authorities to protect domestic refining and marks a win for the Dangote Refinery, which last year sued the regulator and the state oil company to force a halt to imports.

Under the PIA, the regulator may grant import permits only when domestic production is not enough to meet national demand.

The previous regulator, who quit last year, argued that issuing licenses was necessary to maintain competition and prevent market dominance.

Fuel pump prices have surged by more than 54% since the U.S. and Israel began strikes on Iran last week, pushing global oil markets higher. NMDPRA spokesperson George Ene‑Ita blamed the sharp rise in prices on escalating conflict in the Middle East.

Nigeria's average daily petrol consumption fell to 56.9 million liters per day in February 2026, down from 60.2 million liters in January.

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In February, the Dangote Refinery supplied 36.5 million liters of petrol and 8 million liters of diesel to the local market. The regulator deemed these volumes were sufficient, leading to its decision to withhold import licenses.

Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria (CORAN), which has long urged the government to stop issuing import licenses that undermine local refiners' margins, welcomed the regulator's stance.

"For us, anything that protects local production is a good move. The challenge now is to sustain the momentum," Idoko said.