Post by AOJ LAW LOUNGE (@aojlawlounge)

Section 317(8) of the Petroleum Industry Act (PIA), 2021, restricts the importation of petroleum products when there is sufficient locally refined supply. The provision introduces the Backward Integrarion Policy in the downstream petroleum sector. For the avoidance of doubt and for ease of reference, the provision reads as follows:

"The Authority may apply the Backward Integration Policy in the downstream Petroleum sector to encourage investment in local refining."

This means that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should only issue import licences when there is a shortfall in domestic refining capacity.

As at this time, data released by the NMDPRA itself indicates that the Dangote refinery supplies more than 90 per cent of domestic consumption. So, what is the basis for issuing licences to NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy for the importation of Premium Motor Spirit (PMS), also known as petrol?

-AOJ

Dangote Petroleum Refinery sues FG over fuel import licences - Vanguard News https://www.vanguardngr.com/2026/05/dangote-petroleum-refinery-sues-fg-over-fuel-import-licences/

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