INDUSTRY experts are deeply worried over the sharp increase in Nigeria’s petrol import by 207 percent in June 2026 amid local production.
They warned that the huge import could undermine domestic production/refineries.
A former Director-General, Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, condemned such trend describing it as “something to worry about.”
But former Chairman, Major Energies Marketers Association of Nigeria (MEMAN), Adetunji Oyebanji, attributed the sudden surge in petrol import in June to import licences granted major marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in May.
They imported products to ensure energy security and stabilise domestic supply gaps amid the middle-east crisis.
The latest report by NMDPRA showed that Nigeria witnessed a major increase in petrol imports from 5.9 million litres per day in May to 18.1 million litres per day in June, representing 207 percent increase.
Within the period, domestic petrol supply fell by 22 percent.
The surge marked a near return to January 2026, when marketers brought in as much as 24.8 million litres per day.
On the domestic front, supply from the Dangote Refinery declined from a record 41.5 million litres per day in May to 32.5 million litres per day in June, representing a shortfall of nine million litres.
Despite the opposing supply movements, total petrol supply into the market remained relatively stable at 50.6 million litres per day in June, representing an increase of 3.2 million litres per day.
Warning against the consequences of huge petrol import amid local production, Dr Muda Yusuf, said it is not a good signal to prospective petrol refiners and existing ones.
He cautioned that it is necessary for Nigeria to give a good signal that really supports more domestic production of petrol.
According to him, there is nothing particularly wrong with import, but it must be done in a way that it does not undermine domestic refineries.
“The kind of increase we are seeing, I don’t think it is good and will encourage domestic production. We need to regulate it. We need to give the signal that we really support more domestic production.
“We need to balance the interests of those who have taken the risk of investing in refineries and prospective investors, with the interest of importers and consumers,” he said.
Yusuf said, the government has the responsibility to ensure a balance among critical stakeholders as far as petroleum products are concerned.
He noted that part of the fiscal policy in Nigeria is to protect domestic industries, pointing out that there is no evidence of any fiscal protection for domestic refineries now.
“We all know the values that these refineries have brought to Nigeria in terms of reduction in the foreign exchange pressure to import petroleum products. We also have the benefits of the hundreds of thousands of jobs that have been created by Dangote Refinery.
“We have the benefit of backwash integration that this is bringing, particularly benefits in the improvement of our trade balances which reduction in import has brought about.
“We also have the prospect of export of product. All these are critical benefits we must reckon with as far as domestic production is concerned,” Yusuf said.
He reiterated the need for government to protect local refinery, especially the Dangote Refinery.
“I am not saying we should ban import, but there are a number of sister policies that can be used to support domestic refineries.
“We should not carry on as if we are not interested in supporting domestic Refineries,” Yusuf said.
A former MEMAN Chairman, Mr. Adetunji Oyebanji, explained that the recent granting of fuel import licences by NMDPRA triggered the surge in petrol import, leading towards competition in the market.
“NMDPRA granted licences for imports because the prices of Dangote is not competitive. It’s higher than imported petroleum products. That’s what happened,” he noted.
He argued that it’s important to allow petrol import but that the quantity should be enough to keep equilibrium in the price.
