Alleged Fuel Import Licence Bias Sparks Fresh Scrutiny Of NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is facing fresh scrutiny after petroleum marketers alleged that fuel import licences have been repeatedly issued to a select group of companies, raising concerns about transparency and competition in the downstream sector.

The allegations were presented during an interactive session organised by the House of Representatives Committee on Petroleum Resources (Downstream), where industry stakeholders reviewed developments in Nigeria’s petroleum industry.

Representatives of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Energies Marketers Association of Nigeria (MEMAN) participated in the session.

Presenting DAPPMAN’s position, the association’s Executive Secretary, Olufemi Adewole, alleged that the same group of marketers received fuel import licences during the first, second and third quarters of 2026.

He argued that the repeated approvals had effectively shut out other qualified operators capable of importing petroleum products, calling for a more transparent and equitable licensing process.

According to Adewole, the current pattern of allocations undermines the principles of fair competition expected under Nigeria’s deregulated downstream petroleum market.

DAPPMAN also warned that concentrating import opportunities among a few companies could discourage investment, weaken competition and create an uneven business environment.

Beyond the licensing issue, the association expressed concern over the state of petroleum depot operations, citing NMDPRA data which showed that 72 of the country’s 154 licensed depots recorded little or no commercial activity within the past year.

The marketers further criticised what they described as duplicated port charges and questioned the continued billing of some domestic petroleum transactions in United States dollars despite government efforts to promote naira-denominated transactions.

Responding to the concerns, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, assured stakeholders that the allegations would be thoroughly investigated.

He disclosed that officials of the NMDPRA would be invited to appear before the committee and explain the criteria used in approving fuel import licences, as lawmakers seek to determine whether the process aligns with the objectives of the Petroleum Industry Act.

Industry stakeholders also weighed in on the controversy, with some warning that limiting import opportunities to a small number of companies could undermine the gains recorded since the deregulation of the downstream sector and the removal of fuel subsidy.

However, the NMDPRA defended its licensing process, insisting that approvals are granted strictly on the basis of established performance indicators and regulatory requirements.

A senior official of the authority, who spoke anonymously, maintained that import licences are issued only to companies that satisfy the agency’s operational standards, adding that the limited number of approvals also reflects current market realities and domestic refining capacity.