CPPE Urges NMDPRA to Verify Fuel Supply Gaps Before Approving Imports

By Omolola Makanjuola

The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to connect petroleum-product import approvals to fully verified domestic supply gaps.

The group said petroleum-product imports should serve as a contingency mechanism for genuine supply shortages rather than operate as a parallel market capable of displacing adequate domestic production.

The CPPE made the call in a policy brief released on Sunday by its chief executive, Mr Muda Yusuf, titled Policy Brief on Rising Petroleum-Product Imports and the Future of Domestic Refining.

It noted that according to NMDPRA’s June and July 2026 monthly statistics, average daily Premium Motor Spirit (PMS) imports rose from 5.9 million litres in May to 18.1 million litres in June and 19.7 million litres in July.

Imported petrol consequently accounted for 12.4 per cent of total PMS receipts in May, 35.8 per cent in June and 43.3 per cent in July, according to the figures.

Domestic PMS supply, meanwhile, fell from 41.5 million litres per day in May to 32.5 million litres in June and 25.8 million litres in July, while total PMS receipts fell from 47.4 million litres in May to 45.5 million litres in July.

Mr Yusuf said the increase in imports should prompt a transparent assessment of the relationship between domestic production and market demand.

“The concern is not with imports required to close a genuine and independently verified shortfall,” the CPPE said.

The group said imports remained a legitimate contingency tool for refinery outages, seasonal demand spikes, quality gaps, and strategic stock replenishment.

It, however, argued that import permits should not be issued without a transparent demonstration that domestic refiners cannot meet relevant demand at acceptable standards and competitive market terms.

The development comes as Nigeria’s refining sector undergoes a major transition, particularly following the ramp-up of the Dangote Petroleum Refinery and the return of other domestic refineries to operation.

Dangote Refinery, which has a nameplate capacity of 650,000 barrels per day, surpassed that capacity in a performance test in June, reaching more than 700,000 barrels per day, according to the company.

The refinery has also become an increasingly important supplier of refined products to Nigeria and regional markets, although its operations have continued to face challenges, including securing sufficient domestic crude supply.

The CPPE therefore called for regulatory discretion to be exercised transparently, predictably, and consistently with Nigeria’s domestic refining and industrialisation objectives.

“Without this information, the market cannot determine whether permits address a real shortfall or merely expand import competition against available domestic output,” he said.