Rising fuel imports could cripple local refineries, CPPE warns

In a recent policy report, Dr. Muda Yusuf, Chief Executive Officer of the CPPE, stated that unchecked import licensing could undermine the progress made in expanding local refining capacity. He emphasized that if domestic supply is adequate, import permits could reduce refinery utilization and shift demand, income, and employment abroad. The CPPE highlighted that Nigeria's downstream petroleum market has reached a crucial transition point, with large-scale private refining significantly reducing the need for import dependence.

Regulatory data indicates a substantial increase in daily Premium Motor Spirit petrol imports, rising from 5.9 million litres in May to 18.1 million litres in June 2026, and further to 19.7 million litres in July. Imports accounted for 43.3 percent of total PMS receipts in July, a sharp increase from 12.4 percent in May. This surge in imports coincides with strong domestic refining capabilities, including the Dangote Refinery's test run above 700,000 barrels per day in June and other domestic refineries operating at an average capacity utilization of 99.12 percent in April.

The CPPE clarified that its concern is not about imports needed to cover verified shortfalls, but rather about permits approved without transparent