An energy policy organisation has urged President Bola Ahmed Tinubu to consider the broader economic impact of recently issued permits allowing marketers to import petrol, cautioning that the move could undermine Nigeria’s efforts to boost domestic refining and stabilise the economy.
In a statement released Sunday, the 15th of March, 2026, in Abuja, the Energy Transparency and Market Justice Initiative (ETMJI) said approvals from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) could produce unintended outcomes if not carefully managed.
The group’s president, Dr Salako Kareem, highlighted that Nigeria is at a sensitive point in its energy transition, stressing that policy decisions made now will determine whether the country finally reduces its long-standing dependence on imported refined petroleum products.
Kareem noted that while the regulator must ensure adequate fuel supply, expanding import permissions at this stage could weaken efforts to promote local production and long-term sector stability.
“Our respectful appeal to President Bola Ahmed Tinubu is that decisions concerning petrol importation must be carefully weighed against their long-term economic consequences,” Kareem said.
“Nigeria has spent decades trying to overcome the paradox of being a major crude oil producer while relying heavily on imported refined products. Any policy action that appears to reopen the floodgates of importation may slow down the progress that has been made toward strengthening domestic refining capacity.”
He warned that increased petrol imports could put additional pressure on the country’s foreign exchange reserves, particularly as the government implements difficult economic reforms to stabilise the naira and improve fiscal discipline.
“For many years, the country has lost enormous volumes of foreign exchange importing petroleum products that could ideally be refined locally,” Kareem said.
“If import volumes begin to rise again, the demand for foreign currency will inevitably grow. This could place renewed strain on the naira and undermine the broader economic stabilisation programme that the government is currently pursuing.”
The group also cautioned that heavy reliance on imported petrol could lead to product dumping and the entry of substandard fuel into the Nigerian market, a problem that has challenged both regulators and consumers in the past.
Kareem explained that Nigeria’s downstream sector has historically faced quality control issues whenever importation becomes widespread, because imported fuel often passes through multiple intermediaries before reaching domestic depots.
“One of the lessons from the past is that when imports dominate the supply chain, the market sometimes becomes vulnerable to the dumping of inferior petroleum products,” he said.
“This not only creates regulatory complications but also exposes Nigerian consumers to fuels that may damage vehicles, affect industrial machinery and ultimately impose hidden economic costs on the country.”
He added that promoting domestic refining and strengthening local supply chains would enhance product traceability and overall market transparency.
Kareem stressed that ETMJI’s intervention was not a criticism of the NMDPRA, recognising that regulators must make complex decisions to prevent fuel supply disruptions in a volatile market.
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However, he urged the federal government to ensure that short-term supply management does not compromise long-term national goals in the petroleum sector.
“We recognise that the regulator has the responsibility to ensure that Nigerians do not experience fuel shortages, and that duty is extremely important,” he said.
“But at the same time, policy coherence is essential. The country must avoid sending signals that could discourage investment in local refining or create uncertainty about Nigeria’s commitment to energy self-sufficiency.”
Kareem said Nigeria now has a rare opportunity to restructure its downstream petroleum industry in ways that strengthen domestic production, safeguard foreign exchange reserves, and build long-term industrial capacity.
He called on the president to ensure that regulatory frameworks reflect this strategic vision.
“Our appeal is simply for policy alignment. If Nigeria truly wants to build a resilient energy economy, then every major decision in the downstream sector must reinforce the goal of reducing import dependence, strengthening domestic production and protecting the country’s economic stability,” Kareem noted.
The group added that careful coordination between regulators and the presidency is crucial to prevent repeating costly fuel import cycles that have historically drained public resources and weakened the national economy.