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.

The refinery, capable of processing 650,000 barrels of crude daily, is currently operating at 78 per cent capacity, according to NMDPRA.

Economists and industry stakeholders have welcomed the move.

Dr. Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise (CPPE), described it as “a positive development that will boost private investors’ confidence.”

He noted that foreign reserves will be conserved since funds previously spent on petrol importation can now be redirected.

“Fears of a shortfall should not arise. Dangote Refinery has a large storage capacity, and the Nigerian National Petroleum Company (NNPC) Limited also maintains strategic reserves.

“The PIA 2021 provides for such contingencies. This is good news for the economy and for investors in the sector,” Yusuf said.

National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, also hailed the move as “a welcome development”.

He urged full support for domestic refining.

“Since Dangote Refinery can meet local demand, there is no need to import petrol. The government and stakeholders should ensure that crude oil is readily available for its operations.

“Encouraging local production is especially critical given global tensions affecting crude and refined product exports,” Maigandi said. (The Nation)

Update news