NMDPRA's Import Licenses Risk Low-Quality Petrol in Nigeria

The Energy Transparency Market Justice Initiative (ETMJI) condemned the Nigerian Midstream and Downstream Petroleum Regulatory Authority's (NMDPRA) recent decision to issue new petrol import licenses, arguing that it could encourage the influx of low-quality petrol and undermine local refinery efforts. The NMDPRA had previously suspended import licenses in February, citing sufficient domestic refining capacity, but resumed issuing licenses due to supply disruptions linked to the Middle East crisis.

Dr. Salako Kareem, who signed the ETMJI statement, warned that this move risks flooding the market with substandard products and could exacerbate existing supply chain issues. He criticized the regulatory approach, suggesting it sends conflicting signals to investors and undermines confidence in local refining capabilities.

The ETMJI called for transparency in the licensing process and urged the federal government to align regulatory actions with broader energy transition goals, emphasizing the need for stringent quality controls to protect consumers and strengthen the domestic market.