Authorities in Nigeria have suspended gasoline import licences for a second consecutive month, signalling a policy shift toward greater reliance on domestic refining as local fuel production rises.
Data from the country’s downstream petroleum regulator showed that no import permits were issued in February, according to local media reports. The Council of Petroleum Marketers of Nigeria (CORAN), an association representing local refiners, said the regulator had also not approved any gasoline imports so far in March.
Industry stakeholders say the decision reflects growing confidence in domestic refining capacity, particularly output from the large refinery operated by Dangote Group, which has rapidly expanded fuel supply to the local market.
For years, Nigeria has relied heavily on imported refined petroleum products despite being Africa’s largest crude oil producer. But the expansion of domestic refining capacity is beginning to reshape the country’s fuel supply dynamics and reduce dependence on imports.
The latest move by regulators aligns with provisions of the Petroleum Industry Act, which allows fuel imports only when domestic production cannot meet national demand.
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According to regulatory data, available volumes on the local market were deemed sufficient to cover the country’s gasoline needs in recent months, prompting authorities to halt the issuance of new import licences.
Nigeria’s gasoline consumption averaged about 56.9 million litres per day in February 2026, down from 60.2 million litres per day in January.
During the same period, the Dangote refinery supplied approximately 36.5 million litres of gasoline to the domestic market each day, alongside about 8 million litres of diesel.
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The refinery, one of the largest single-train refining facilities globally, reportedly reached its full processing capacity of around 650,000 barrels per day in February.
The increase in domestic output has significantly boosted fuel availability within Nigeria and strengthened the government’s ability to limit imports without creating supply shortages.
CORAN welcomed the suspension of import licences, saying the measure supports local refining and encourages further investment in the sector.
Spokesman Eche Idoko said policies that prioritise domestic production were essential for building a sustainable refining industry in Nigeria.
“Any measure that protects local refining capacity is a positive development for the sector,” he said, while cautioning that maintaining the policy over time would be critical to ensuring long-term industry growth.
The decision also represents a shift from the approach taken by the regulator’s former leadership, which had argued that fuel imports should continue to ensure competition in the downstream market and prevent the emergence of a single dominant supplier.
Officials at the time had warned that limiting imports too aggressively could concentrate market power and potentially lead to pricing concerns.
However, proponents of the new policy say strengthening domestic refining capacity will ultimately enhance Nigeria’s energy security while reducing the country’s reliance on imported fuel.
For decades, Nigeria has faced the paradox of exporting crude oil while importing the majority of its refined petroleum products due to underperforming state-owned refineries and limited private refining capacity.
The launch and expansion of the Dangote refinery, backed by billionaire industrialist Aliko Dangote, has been widely viewed as a potential turning point for the sector.
Once fully integrated into the domestic supply chain, the facility is expected to significantly reduce Nigeria’s fuel import bill and could even position the country as a supplier of refined petroleum products to other parts of West Africa.
Still, analysts say the transition toward domestic refining will require careful management to ensure that supply remains stable and that market competition is preserved.
Nigeria’s fuel market is one of the largest in Africa, and any disruptions to supply can quickly affect transportation costs, electricity generation and broader economic activity.
Maintaining reliable refinery output and balancing local production with potential imports when necessary will therefore remain key challenges for policymakers.
For now, however, the suspension of gasoline import licences suggests that Nigeria’s long-standing reliance on imported fuel may be beginning to ease as domestic refining capacity expands.
