The Nigerian government has resumed the approval of petrol import licenses for oil marketers in a fresh move that signals a change in the country’s fuel supply strategy.
The approvals were granted through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, allowing six major petroleum companies to import about 720,000 metric tons of Premium Motor Spirit, popularly known as petrol.
The latest development marks a shift from the government’s recent focus on relying mainly on local refining, especially production from the Dangote Refinery.
The companies approved for the fuel import include NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas and Bono Energy.
According to the allocation, NIPCO will import 120,000 metric tons of petrol, while AA Rano and Matrix Energy are each expected to bring in 150,000 metric tons. Shafa and Pinnacle received approval for 120,000 metric tons each, while Bono Energy will import 60,000 metric tons.
Together, the approved volume stands at 720,000 metric tons of fuel.
Although the regulatory authority has not publicly explained the reason behind the new import approvals, the decision has attracted attention because Dangote Refinery recently maintained that it has the capacity to satisfy most of Nigeria’s fuel demand.
Industry data released by the NMDPRA showed that the 650,000 barrels-per-day Dangote Refinery currently supplies nearly 90 percent of the country’s daily petrol consumption.
Despite this, the fresh import licenses have generated mixed reactions among industry players and stakeholders, with some questioning why fuel imports are increasing while local refining capacity is improving.
The development also comes shortly after President Bola Ahmed Tinubu appointed Rabiu Abdullahi Umar as the new Chief Executive Officer of the NMDPRA.
The appointment followed the removal of Saidu Mohammed, who was reportedly relieved of his position while on an official assignment in Germany.