The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is facing allegations from petroleum marketers over the issuance of fuel import licences, with claims that approvals have been repeatedly granted to a select group of companies, raising concerns about transparency, competition and the future of Nigeria’s deregulated downstream petroleum sector.
The allegations were presented during an interactive session organised by the House of Representatives Committee on Petroleum Resources (Downstream), where stakeholders, including 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), highlighted challenges affecting the industry.
DAPPMAN alleged that import licences issued by the NMDPRA for the first, second and third quarters of 2026 were consistently allocated to the same marketers, excluding other qualified operators with the capacity to import petroleum products.
The association warned that such a pattern could weaken competition, discourage investment and undermine the objectives of the deregulated downstream petroleum market established under the Petroleum Industry Act (PIA).
Presenting the association’s memorandum, DAPPMAN Executive Secretary, Olufemi Adewole, accused the regulatory authority of failing to ensure fairness in the licensing process.
According to him, repeated approvals for the same companies suggest that many qualified marketers have been denied the opportunity to participate in fuel importation.
“The same set of marketers received import allocations in the first, second and third quarters of 2026, as though other qualified operators do not exist. This is unacceptable, and we urge this committee to ensure greater transparency and fairness in future allocations,” Adewole said.
He stressed that the licensing process should reflect fairness and equal opportunity, particularly as the Federal Government continues to promote a fully deregulated downstream petroleum sector.
DAPPMAN also expressed concern over the impact of the current licensing pattern on depot owners nationwide.
The association said data obtained from the NMDPRA showed that 72 out of Nigeria’s 154 licensed petroleum depots recorded little or no trading activity in the past year, leaving many operators with declining revenues and rising operational losses.
It maintained that while boosting domestic refining remains a national priority, fuel importation should continue to serve as a backup mechanism for addressing supply shortages caused by refinery maintenance, logistics challenges or other disruptions.
Beyond import licensing, DAPPMAN also criticised what it described as duplicated port charges and the continued billing of domestic petroleum transactions in United States dollars despite the Federal Government’s directive discouraging foreign currency-denominated charges for local operations.
Responding to the concerns, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, assured stakeholders that the allegations would be investigated.
He disclosed that the committee would summon NMDPRA officials to explain the criteria used in issuing fuel import licences and determine whether the process aligns with the objectives of the Petroleum Industry Act.
“We have taken note of your concerns regarding the lopsided issuance of import licences. These questions will be raised when the NMDPRA appears before the committee to explain the basis upon which the allocations were made,” Ugochinyere said.
Energy analyst Rasheed Adeleke said the goal of deregulation and fuel subsidy removal was to create a competitive market where all qualified participants have equal opportunities.
According to him, concentrating import opportunities among a few operators runs contrary to the principles of market liberalisation and may discourage future investment.
“The essence of deregulation of the downstream sector and the removal of fuel subsidy by the Federal Government is obviously lost if imports are concentrated on a few marketers and importers,” he said.
Adeleke added that Nigeria has made significant progress in stabilising the downstream petroleum sector since subsidy removal and warned that policies capable of distorting competition should be avoided.
He noted that maintaining a transparent regulatory framework would be essential to sustaining investor confidence.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, also called on the NMDPRA to adopt a more transparent approach to the allocation of fuel import licences.
He said regulators have a responsibility to protect the interests of all stakeholders while creating an environment that promotes efficiency and healthy competition.
According to Yusuf, transparent licensing procedures would strengthen confidence in the sector and assure investors that approvals are based on objective criteria rather than preferential treatment.
He further urged the authority to implement an inclusive framework that gives all qualified marketers the opportunity to participate, provided they meet regulatory requirements.
Although the NMDPRA’s spokesperson, George Ene-Ita, could not be reached for comment, a senior official of the authority, who spoke anonymously, defended the licensing process.
The official maintained that companies granted import licences met all regulatory conditions before approvals were issued.
“We have some metrics these companies need to meet before they are given licences. The activities of Dangote Refinery show that the number of licences required is limited. The Authority has confidence in the marketers that continue to receive approvals because they have consistently met the required standards,” the official said.
