The Federal Government has suspended the issuance of Premium Motor Spirit (PMS), also known as petrol, import licences for the second consecutive month.
The move comes as regulators begin implementing provisions of the Petroleum Industry Act (PIA), which permit imports only when local supply is insufficient.
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), no import licences were granted in February. The Crude Oil Refineries Association of Nigeria (CORAN) also confirmed to Reuters that none has been issued so far in March, indicating a shift towards prioritising domestic production.
The development reflects a stronger intention by the Federal Government to protect local refining capacity and represents a boost for the Dangote Refinery and other domestic refineries. Last year, the refinery and other operators took legal action against the NMDPRA and Nigerian National Petroleum Company Limited (NNPC Limited) in a bid to stop petrol imports.
Under the PIA, the regulator may approve import permits only when domestic output cannot meet national demand.
There have previously been debates that issuing licences was necessary to maintain competition and prevent the dominance of a single market player.
Fuel pump prices have increased by more than 54 per cent since the United States and Israel launched strikes on Iran last week, pushing global oil markets upward.
NMDPRA spokesperson George Ene‑Ita attributed the sharp rise in prices to the escalating conflict in the Middle East.
Nigeria’s average daily petrol consumption declined to 56.9 million litres per day in February 2026, down from 60.2 million litres recorded in January.
During February, the Dangote Refinery supplied 36.5 million litres of petrol and eight million litres of diesel to the domestic market.
According to the NMDPRA, these volumes were adequate, leading to its decision to suspend the issuance of import licences.
Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria (CORAN), which has consistently urged the government to stop issuing import licences that affect local refiners’ margins, welcomed the regulator’s decision.
“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” Idoko said.