The Federal Government has suspended the issuance of Premium Motor Spirit (PMS) or petrol import licenses for a second straight month.
This is as regulators begin enforcing provisions of the Petroleum Industry Act (PIA) that allow imports only when domestic supply falls short.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), no import licenses were issued in February, while the Crude Oil Refineries Association of Nigeria (CORAN) confirmed to Reuters that none has been issued so far in March, signalling a shift towards prioritising local output.
The shift highlights a stronger intent by FG to protect domestic refining and marks a win for the Dangote Refinery and other local refineries, which last year sued the NMDPRA and the state oil company, the Nigerian National Petroleum Company (NNPC) Limited, 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.
There have been previous arguments 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 litres per day in February 2026, down from 60.2 million litres in January.
In February, the Dangote Refinery supplied 36.5 million litres of petrol and 8 million litres of diesel to the local market.
According to NMDPRA, 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.
