NMDPRA Grants Gasoline Import Permits to Six Firms to Curb Monopoly Fears

in a swift recalibration of the downstream sector, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted gasoline import permits to six major depot owners and marketers.

This move follows earlier reports that the regulator had suspended all import licenses to favor domestic production from the Dangote Petroleum Refinery.

The decision reflects the government’s effort to balance the “local-first” mandate of the Petroleum Industry Act (PIA) 2021 with the need to prevent a market monopoly and ensure national fuel security.

The Monopoly Check: Why the Regulator Pivoted

While the Dangote Refinery proved it could meet the bulk of national demand in February, concerns about market concentration and supply-chain vulnerability prompted the regulator to re-open the import window for a select group of marketers.

• February Statistics: The Dangote Refinery supplied an average of 36.50 million litres per day in February, effectively meeting the vast majority of Nigeria’s daily consumption.

• The “Single Point of Failure” Risk: Market analysts and marketers raised alarms that relying solely on one refinery—regardless of its size—posed a significant risk. Any technical glitch or industrial action at the Lekki plant could trigger a nationwide fuel crisis.

• Price Competition: By allowing six competitors to import, the NMDPRA is ensuring that the ₦1,075 per litre gantry price recently set by Dangote remains competitive and market-driven.

The Selected Six: Who Gets to Import?

While the NMDPRA has not publicly named all six firms, industry sources indicate that the permits were granted to “Tier-1” depot owners with the largest storage capacities and logistics networks.

The PIA Balancing Act

The regulator is walking a fine line between two conflicting mandates within the Petroleum Industry Act:

• Section 317(8): Bars imports “where local production is sufficient” to save foreign exchange and support industrialization.

• Anti-Monopoly Provisions: Requires the regulator to prevent any single player from dominating the market to the detriment of consumer prices and supply stability.

By granting these six permits, the NMDPRA is essentially creating a “Hybrid Supply Model” where local refining provides the base load (approx. 80–90%), while imports serve as a strategic buffer and competitive check.

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