Nigeria FG: 830,000MT Petrol Import Approval for Q4 2026

• The Federal Government has approved the importation of 830,000 metric tonnes of petrol for Nigeria's fourth quarter of 2026.
• This approval, granted by the NMDPRA, aims to ensure adequate fuel supply during the Yuletide period.
• Six major petroleum marketers, including Matrix Energy and AYM Shafa, received the Q4 import permits.
• Dangote Refinery is challenging the NMDPRA in Federal High Court over the continued issuance of import licenses, arguing domestic supply is sufficient.
• Despite the new imports, Nigeria's overall reliance on imported petrol has significantly decreased, with domestic refineries supplying about 76.7% of total petrol in Q1 2026.

The Dangote Refinery import license challenge centers on the argument that the NMDPRA should not issue or renew petroleum product import licenses when sufficient domestic supply is available.

The Nigerian Federal Government has authorized the importation of 830,000 metric tonnes of Premium Motor Spirit, commonly known as petrol, for the fourth quarter of 2026. This significant Nigeria FG 830,000MT petrol import approval, issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is timed to ensure adequate fuel availability during the upcoming Yuletide festivities, a period traditionally marked by heightened demand. Industry sources indicate that the permits were formally signed by the regulator mid-month.

Six prominent Nigerian petroleum marketers have been granted these Q4 import permits: Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil, and Bono Energy. These companies have consistently been the primary recipients of the NMDPRA petrol import permits throughout the current year. Their combined import allocations previously stood at 180,000 metric tonnes in the first quarter, escalating to 720,000 metric tonnes in the second quarter. The third-quarter allocation further increased to over 800,000 metric tonnes, with the same six entities among the approved importers.

This latest allocation represents a substantial increase compared to earlier import volumes approved this year, underscoring the government's proactive approach to securing Nigeria's Q4 2026 fuel supply. The decision to approve such a large volume of imports comes despite a general trend of decreasing reliance on foreign fuel sources, as domestic refining capabilities continue to expand.

The continued issuance of these substantial petrol import permits by the NMDPRA has reignited concerns within the industry, particularly given the growing capacity of local refineries. Notably, the Dangote Petroleum Refinery, which has begun supplying petrol to the Nigerian market, is actively challenging the regulatory framework governing import licenses. The Dangote Refinery import license challenge centers on the argument that the NMDPRA should not issue or renew petroleum product import licenses when sufficient domestic supply is available.

This critical legal dispute is currently before the Federal High Court. Dangote Refinery has formally requested the court to nullify import licenses issued by the regulator under circumstances where it contends that the nation's domestic supply can meet demand. The Federal High Court Dangote NMDPRA case is scheduled for its next hearing on October 7, 2026, an outcome that could significantly reshape future import policies and market dynamics in Nigeria's downstream sector.

Despite the recent Nigeria FG 830,000MT petrol import approval, Nigeria's overall dependence on imported petrol has seen a significant decline, primarily due to the ramp-up in production from local refineries. Data from the NMDPRA reveals that domestic refineries were responsible for approximately 76.7 percent of Nigeria’s total petrol supply during the first quarter of 2026. Concurrently, petrol imports experienced a substantial year-on-year reduction of about 60 percent, amounting to roughly 965.5 million litres in the same period.

The latest approval ensures that imported petrol will remain an integral component of Nigeria’s fuel supply mix throughout the final quarter of the year, complementing the output from domestic refining operations. This 830,000MT import allocation is specifically intended to bolster supply capacity in the downstream market, enabling Nigerian petroleum marketers to meet the anticipated surge in petrol consumption during the festive season. However, the Dangote Refinery has publicly asserted its capability to meet both local consumption needs and export demands, suggesting a potential surplus in domestic production.

Lawyers advising petroleum marketers or investors in Nigeria's downstream sector should closely monitor the ongoing Federal High Court case between Dangote Refinery and NMDPRA, as its outcome could significantly impact future petrol import licensing, domestic supply policies, and market competition. Compliance officers should note the continued regulatory approval of imports despite local refining capacity, indicating potential for ongoing legal and policy shifts in the sector.

Source: Original reporting via The PUNCH