Nigeria Suspends Petrol Import Licences to Prioritise Local Refining

Nigeria Suspends Petrol Import Licences to Prioritise Local Refining

Nigeria has suspended the issuance of new petrol import licences as regulators move to prioritise locally refined fuel, a development widely seen as strengthening the position of Africa’s richest man, Aliko Dangote, and his Dangote Refinery.

The policy shift comes as domestic refining capacity continues to grow, particularly from the Lagos-based Dangote refinery, which can process up to 650,000 barrels of crude oil per day. The facility is expected to significantly meet Nigeria’s petrol demand while also supplying refined products to markets across West Africa.

Industry sources say the country’s downstream regulator has not issued fresh petrol import permits in recent weeks, as authorities enforce provisions of the Petroleum Industry Act. The law allows fuel imports only when local production is unable to meet national demand.

Sector data indicates that a significant portion of petrol supplied in Nigeria in recent months has come from the Dangote refinery, reducing the country’s reliance on imports that previously consumed billions of dollars in foreign exchange annually.

Energy analysts say the move could reshape fuel markets across the West African region. With expanding refining capacity, Nigeria — historically known as Africa’s largest crude oil producer but heavily dependent on imported fuel — could increasingly become a supplier of refined petroleum products to neighbouring countries.

For Africa’s energy sector, the development reflects a broader push toward strengthening local industrial capacity and reducing dependence on imported fuel, a long-standing challenge for many resource-rich countries on the continent.

Blessing Anolaba

Editorial & Creative Correspondent
A storyteller and journalist passionate about telling stories for policy change and impact.