Nigerian Government Considers Resuming Fuel Import Permits Amid Supply Concerns

The Nigerian government is considering resuming the issuance of petrol and diesel import permits by mid-February to mitigate potential supply shortages. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is expected to approve new import licenses later this month or early March.

The delay in permit issuance was partly due to leadership changes following the exit of former Chief Executive Farouk Ahm in December. Market conditions have shifted, with Dangote Refinery experiencing a decline in crude receipts and lower refinery output, leading to a possible fuel shortfall.

The recent increase in petrol prices has prompted renewed interest in importing fuel to supplement local supply. However, reliance on coastal transport for fuel evacuation poses cost challenges, potentially burdening consumers with additional expenses.

Dangote Refinery advocates for cost-efficient evacuation methods to prevent a sharp increase in pump prices and maintain market competitiveness.