Nigeria Halts Gasoline Imports as Dangote Refinery Dominates

Nigeria has officially halted the issuance of gasoline import licenses, a strategic move that significantly bolsters the position of Aliko Dangote's refinery. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveals that Dangote's plant supplied 64% of the nation's gasoline requirement in February. This increased domestic supply has led to the suspension of import licenses for major oil marketing firms.

The new policy dictates that import licenses will only be granted if local production is insufficient, a condition not currently met. Dangote's refinery, with a capacity of 650,000 barrels per day, is operating at 78% capacity. Despite meeting a large portion of the demand, a daily deficit of 20 million liters was covered by existing imported stock.

This policy shift marks a departure from decades of Nigeria exporting crude oil while importing refined petroleum products. Analysts suggest that sustaining current import volumes could undermine investment incentives for domestic refining capacity, though potential price pressures exist due to global conflicts. The regulator's data was compiled prior to recent geopolitical events impacting oil markets.