Investment in Nigeria's local refineries is at risk if petroleum-product import approvals continue without verification of domestic shortfalls, the Centre for the Promotion of Private Enterprise said. The business advocacy group issued a policy brief signed by CEO Dr Muda Yusuf urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority to restrict import licences to objectively established supply gaps.
CPPE flagged a sharp rise in Premium Motor Spirit imports, which climbed from 5.9 million litres per day in May 2026 to 18.1 million litres per day in June, a 206.8% jump, and then to 19.7 million litres per day in July. Those July imports accounted for 43.3% of total PMS receipts, up from 12.4% in May, the brief said, and CPPE warned that indiscriminate import approvals could weaken the economics of domestic refining capacity that policymakers are trying to nurture.
The group said imports should remain an option when local output cannot meet demand, for example during refinery outages, seasonal demand spikes, quality constraints or stock replenishment. It recommended that NMDPRA first establish and publish the size of any supply deficit before granting permits. A credible assessment, CPPE argued, must factor projected demand, refinery output, inventories, committed domestic deliveries, product specifications and logistics constraints, and import volumes should reflect that assessment.
CPPE also urged that qualified domestic refiners be given a defined period to meet identified demand before any residual requirement is allocated to importers. The organisation noted that the Petroleum Industry Act, particularly Sections 317(8), (9), contemplates import licensing in the context of domestic shortfalls. The brief appeared alongside data showing stronger upstream and refining flows, including domestic crude oil and condensate supply to local refineries reaching 97.4% in the second quarter of 2026, and national reserve and production targets published earlier in the year.
If NMDPRA adopts CPPE's recommendations it would require published deficit assessments to precede import approvals and give domestic refiners first claim on shortfalls. The policy group positioned its call amid broader government goals, including declared reserves of 37.01 billion barrels of crude oil and condensate and 215.19 trillion cubic feet of natural gas as of January 1, 2026, and plans to expand gas resources and crude output toward national targets.
