Rising Fuel Imports Threaten Nigeria's Local Refineries

The Centre for the Promotion of Private Enterprise (CPPE) has issued a warning regarding the potential negative impact of rising fuel imports on Nigeria's local refining sector. In a policy report, Dr Muda Yusuf, the Chief Executive Officer of CPPE, stated that issuing petroleum-product import permits without evidence of a genuine supply shortfall could undermine domestic refiners.

The report highlighted a significant increase in petrol imports, which rose from 5.9 million litres per day in May to 19.7 million litres in July 2026, with imports accounting for 43.3% of total receipts in July. This surge occurred despite strong domestic refining capabilities, as evidenced by Dangote Refinery's test run exceeding 700,000 barrels per day and domestic refineries operating at 99.12% capacity in April.

The CPPE clarified that while imports are necessary for verified shortfalls, permits should not be granted without transparent justification. Yusuf linked this issue to the Petroleum Industry Act, which mandates that import licensing be tied to domestic supply shortfalls, emphasizing the need for regulatory discretion aligned with national interests.