FG halts petrol import licenses to boost local refining

In a move expected to strengthen domestic refining, the Federal Government has suspended the issuance of import licenses for premium motor spirit (PMS), popularly known as petrol.

The decision aligns with the Petroleum Industry Act (PIA) 2021, which prohibits import licenses “where local production is sufficient.”

George Ene-Ita, Head of Public Affairs at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), confirmed that no import licenses for petrol have been issued this year.

“We have not issued import licenses this year because local production has met national requirements for PMS.

“There is no need to issue licenses when domestic sources can adequately supply the market. Should there be a shortfall, the situation will be assessed,” Ene-Ita said.

Data from NMDPRA shows that Dangote Refinery supplied 64 per cent of national petrol demand, supplemented by rollover stock from previous months.

Conversely, oil marketing companies such as TotalEnergies SE, Conoil Plc, and MRS Nigeria Plc, which imported about 25 per cent of the country’s petrol needs in January, have had their import licenses suspended.

The development is a major boost for Dangote Refinery, which has consistently maintained that it can meet local demand.