Experts say import licences will improve fuel pricing
Lagos, April 2026 TBL Africa Dr Joseph Nwakwue, former Chairman of the Society of Petroleum Engineers (SPE), says the expansion of import licences for oil marketers is necessary to boost competition and promote fair pricing in the downstream petroleum sector.
Nwakwue said this in an interview on Sunday in Lagos.
The energy expert who expressed support for the Federal Government’s approval of six additional licences for oil marketers to import petroleum products, said the step would enhance supply stability and improve price competition in the deregulated market.
Nwakwue said consumer welfare should remain at the centre of policy decisions, stressing that only healthy competition could deliver reasonable pump prices.
“I believe consumers’ welfare is the prime objective of the policy. Fair pricing is what works for consumers at the pump, and we need competition,” he said.
“To get fair pricing in a deregulated market, price contestation is required.”
He added that importation should remain open within a contestable market framework, noting that even with growing local production, competition from imports would continue to play a balancing role until domestic supply fully stabilises.
Similarly, Dr Ayodele Oni, Partner and Head of Energy and Natural Resources Practice Group, Bloomfield Law Practice, said the decision was in line with the provisions of the Petroleum Industry Act (PIA).
Oni explained that the law permits importation in situations where there are supply shortfalls, noting that local refineries were still unable to fully meet national demand in spite of ongoing improvements.
“The Petroleum Industry Act allows for importation, especially where there are supply shortfalls,” he said.
He explained that the issuance of limited import licences was necessary to ensure energy security amid current market uncertainties.
“Only a few firms are allowed to import refined petroleum, provided the products are affordable and meet regulatory standards.
“These measures are interim arrangements to manage a challenging period,” Oni added.
NAN reports that the Federal Government on March 11 approved six new import licences for oil marketers following concerns over supply disruptions linked to global geopolitical tensions.
The development reflects a policy balancing act between reducing reliance on imported fuel and ensuring steady domestic supply as local refining capacity continues to improve.
A report by S&P Global indicated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved licences covering about 180,000 metric tonnes of Premium Motor Spirit.
