FG approves 6 oil marketers to import PMS

Nigeria is still keeping imported petrol in its supply chain despite the sharp increase in domestic refining, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approving 830,000 metric tonnes of Premium Motor Spirit (PMS) imports for the fourth quarter of 2026.

The approval, issued on September 18, covers six oil marketing companies comprising Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The latest allocation raises a question over why the country continues to rely on imported petrol when local refineries now provide the bulk of the product available in the domestic market.

The answer emerging from recent supply data is that increased refining capacity has not completely eliminated fluctuations in domestic supply, making imports a form of supply buffer for the market.

NMDPRA data cited in recent reports showed that domestic petrol supply dropped from 32.5 million litres per day in June to 25.8 million litres per day in July, representing a 21 per cent decline.

Over the same period, petrol imports moved in the opposite direction, rising from 18.1 million litres per day to 19.7 million litres per day.

Total daily petrol supply consequently fell from 50.6 million litres in June to 45.5 million litres in July.

The figures indicate that, although domestic refining has become the dominant source of petrol supply, local production can still fall below the level required to maintain overall market supply.

That is where imported PMS continues to play a role.

The latest approval is not the first time NMDPRA has authorised imports this year. In June, the regulator approved fresh petrol import permits for the third quarter after reports of declining fuel inventories and concerns over potential supply shortages.

At the time, sources cited by Argus said the permits were issued to “head off projected shortfalls in supply” and ensure adequate availability in the domestic market.

The Q4 approval follows the same supply-security logic, although the regulator has not publicly released a detailed explanation of the September 18 allocation.

The latest 830,000-tonne approval was granted to the same six marketers identified in reports on the third-quarter allocation, indicating that NMDPRA is maintaining an import channel for independent downstream operators even as the country’s dependence on imported petrol declines.

Recent supply figures put the change in perspective.

Domestic refineries supplied nearly 80 per cent of petrol available in Nigeria during the first six months of 2026, according to NMDPRA data cited in reports, while imports accounted for just over 20 per cent.

That represents a major shift from the period when imported PMS was the country’s principal source of petrol.

However, the July figures show why the remaining import component has not disappeared. A decline in domestic supply was accompanied by an increase in imports, suggesting that imported products can help bridge periods when local output does not fully cover market requirements.

There are also timing and logistics issues involved in petrol supply.

NMDPRA’s Head of Public Affairs, George Ene-Ita, said earlier this month that petrol pricing and supply were affected by factors including crude feedstock sourcing, the time between crude procurement and delivery to refineries, imported PMS cargoes, transportation and associated marine and inland charges.

He also noted that there can be a time lag between when imported PMS cargoes are ordered and when they arrive at Nigerian ports for distribution.

For the regulator, maintaining access to imported products therefore provides another source that can be activated when domestic supply is insufficient or disrupted.

The latest 830,000-tonne approval comes against a backdrop of tighter conditions in the international refined-products market, with disruptions to global fuel flows increasing pressure on product availability.

For motorists and other petrol consumers, however, the key issue is whether maintaining an import window translates into more reliable supply and whether the additional imported volumes will affect pump prices in a deregulated market.

Under Nigeria’s current market structure, imported petrol does not automatically mean cheaper petrol. Importers have to contend with international product prices, foreign exchange, freight, marine charges, inland transportation and other landing costs.

This means the continued approval of imports serves primarily as a supply-security mechanism rather than evidence that Nigeria has returned to its previous dependence on imported petrol.

The latest 830,000-tonne allocation consequently points to a downstream market in transition: domestic refining now supplies most of the country’s petrol, but imports remain available to cover supply gaps and protect the market against disruptions in local production.

The question now is how long that import buffer will remain necessary as domestic refining capacity and output continue to expand.