Petrol imports surge despite rising local refining capacity — CPPE
Nigeria's petrol imports increased by 233.9% between May and July 2026, despite a rise in domestic refining capacity, according to a report by the Centre for the Promotion of Private Enterprise (CPPE). Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that average daily petrol imports reached 19.7 million liters in July, up from 5.9 million liters in May. Meanwhile, domestic petrol supply dropped to 25.8 million liters in July from 41.5 million liters in May. Imported petrol accounted for 43.3% of total petrol receipts in July, compared to 12.4% in May. CPPE CEO Dr. Muda Yusuf criticized the trend, arguing that imports should address supply gaps rather than displace domestic production. He emphasized the need for transparent import licensing based on demonstrated supply shortfalls. The report highlighted the Dangote Petroleum Refinery's increased capacity and called for a clear distinction between necessary imports and those that undermine local refining efforts.
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to link petroleum-product import approvals to transparently verified domestic supply gaps. In a policy brief released by its chief executive officer, Muda Yusuf, the group warned that unchecked imports risk undermining domestic refining efforts and national energy security. The CPPE emphasized that imports should serve as a contingency measure for genuine shortages, not as a substitute for local production. According to data published by NMDPRA, petrol imports saw a dramatic rise between May and July 2026. Average daily Premium Motor Spirit (PMS) imports climbed from 5.9 million litres in May to 18.1 million litres in June and 19.7 million litres in July. This marked a sharp increase from previous months, with imported petrol accounting for 12.4 per cent of total PMS receipts in May, 35.8 per cent in June, and 43.3 per cent in July. Meanwhile, domestic PMS supply dropped from 41.5 million litres per day in May to 25.8 million litres in July. Total PMS receipts also declined slightly during the same period, falling from 47.4 million litres in May to 45.5 million litres in July. Yusuf highlighted that the surge in imports raises critical questions about the relationship between domestic production and market demand. He stressed that while imports are necessary under certain conditions, such as refinery outages, seasonal demand fluctuations, or quality issues, they must be justified by verifiable evidence of supply shortfalls. The CPPE argued that granting import licenses without such proof risks weakening investments, job creation, and foreign-exchange reserves, all of which are vital to Nigeria’s economic growth. The situation occurs amid a notable expansion in Nigeria’s domestic refining capacity. The Dangote Petroleum Refinery, which has a nameplate capacity of 650,000 barrels per day, exceeded that figure during a performance test in June, achieving over 700,000 barrels per day. The refinery has become a key player in supplying refined products both domestically and regionally, though it continues to face challenges, including securing enough domestic crude oil supply. Other refineries have also returned to operation, contributing to the nation's refining capabilities. Despite these developments, the CPPE contends that the current regulatory environment lacks clarity on when and how imports should be permitted. Yusuf pointed to Sections 317(8) and (9) of the Petroleum Industry Act, which outline conditions under which import licenses may be granted in response to domestic supply shortfalls. However, he argues that these provisions require more transparent and consistent application to align with Nigeria’s broader goals of promoting local refining and industrialization. To ensure accountability, the CPPE proposed that NMDPRA conduct a thorough and public supply-gap analysis before approving large-scale imports. This would involve disclosing projected demand, verified domestic production levels, inventory status, committed refinery deliveries, product specifications, logistical limitations, and the exact amount of supply that still needs to be met through imports. Without such information, the CPPE warns, the market cannot differentiate between legitimate imports designed to fill real gaps and those that simply increase competition against existing domestic output. The CPPE also recommended that NMDPRA publish a monthly national supply-and-demand balance, detailing refinery output, domestic evacuation, inventories, consumption, exports, committed deliveries, imports landed, and stock-sufficiency days. It further suggested that any significant import approval should be based on a formal assessment of the size and duration of the supply shortfall, with permits tied to specific timeframes and set to expire automatically. Qualified entities would need to demonstrate their ability to meet demand through domestic means before receiving import authorizations.
Nigeria's petrol imports increased by 233.9% between May and July 2026, despite a rise in domestic refining capacity, according to a report by the Centre for the Promotion of Private Enterprise (CPPE). Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that average daily petrol imports reached 19.7 million liters in July, up from 5.9 million liters in May. Meanwhile, domestic petrol supply dropped to 25.8 million liters in July from 41.5 million liters in May. Imported petrol accounted for 43.3% of total petrol receipts in July, compared to 12.4% in May. CPPE CEO Dr. Muda Yusuf criticized the trend, arguing that imports should address supply gaps rather than displace domestic production. He emphasized the need for transparent import licensing based on demonstrated supply shortfalls. The report highlighted the Dangote Petroleum Refinery's increased capacity and called for a clear distinction between necessary imports and those that undermine local refining efforts.
Bias read (Center): While the article highlights concerns about the impact of petrol imports on domestic refining, it presents both sides of the issue, acknowledging the role of imports as a contingency measure while criticizing their misuse. The framing remains balanced, avoiding overtly positive or negative slants on
Why factuality (90): This article provides detailed and consistent data matching the CPPE brief and NMDPRA statistics. It accurately reflects the 233.9% surge in imports and the corresponding drop in domestic supply, aligning closely with the cross-source consensus.
Why objectivity (85): The article presents the information objectively, focusing on the facts and quoting CPPE officials directly. While it highlights the concerns raised by CPPE, it does so without introducing personal opinion or emotional language.
The Centre for the Promotion of Public Enterprise (CPPE) has called for Nigeria to reduce its reliance on imported petrol by developing a competitive domestic refining sector. In a statement, CPPE's CEO, Dr. Muda Yusuf, expressed concerns over the increasing volume of Premium Motor Spirit (PMS) imports, which he argues undermines local refining efforts and threatens energy security. He noted that while imports may be necessary to address verified supply shortages, they should not displace domestic production. Recent data shows a significant rise in PMS imports, with daily volumes increasing sharply between May and July 2026. Yusuf emphasized the need for transparency in issuing import licenses and aligning policies with the goals of strengthening domestic refining and industrialization.
Bias read (Center): The article presents arguments from the CPPE regarding Nigeria's energy policy and does not exhibit clear bias toward any particular political ideology. It focuses on policy recommendations and economic considerations without overtly favoring one side over another.
Why factuality (88): The article accurately reports the CPPE's call for reducing import dependence and includes specific figures on import increases and domestic supply declines. It references the same NMDPRA data as the other sources, supporting the cross-source consensus.
Why objectivity (82): The article maintains an objective tone, presenting the CPPE's stance without overt bias. However, it uses somewhat urgent language ('critical transition point') which may subtly emphasize the gravity of the situation.
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure that petroleum product imports are tied to verified domestic supply gaps. The CPPE argues that current import levels are undermining domestic refining efforts and national energy security. In a policy brief, they highlight that imported petrol accounted for up to 43.3% of total PMS receipts in July 2026, while domestic supply dropped significantly during the same period. The CPPE emphasizes that imports should only be allowed when there is a genuine need, not as a substitute for domestic production. This comes as Nigeria's refining sector expands, notably with the Dangote Refinery operating above its capacity. The CPPE stresses the importance of transparency in assessing whether domestic refiners can meet market demands before approving imports.
Bias read (Center): While the issue of petroleum imports and domestic production is politically charged, the article presents the CPPE's concerns without overt ideological slant. It provides data and quotes from the CPPE without promoting a specific political agenda. The framing remains balanced, focusing on economic,
Why factuality (85): The article cites specific data from the CPPE brief and attributes it to NMDPRA's June and July 2026 statistics, aligning with the cross-source consensus. It accurately reports the rise in petrol imports and decline in domestic supply, though it cuts off mid-sentence, limiting full context.
Why objectivity (80): The tone remains neutral, presenting the CPPE's concerns without overt bias. However, the article slightly emphasizes the implications of the import trends, which may lean toward highlighting the issue rather than maintaining strict neutrality.
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