NMDPRA Faces Allegations Over Fuel Import Licences As Reps Move To Investigate

NMDPRA Faces Allegations Over Fuel Import Licences As Reps Move To Investigate
House of Representatives lawmakers promised to investigate the alleged lopsided licensing process.
NMDPRA defended its process, saying approved companies met required regulatory performance standards.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has come under scrutiny following allegations by petroleum marketers that the agency repeatedly granted fuel import licences to a select group of companies.

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EKO HOT BLOG reports that

The allegation was raised during an interactive session organised by the House of Representatives Committee on Petroleum Resources (Downstream), attended by major industry 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.

Presenting DAPPMAN’s memorandum, its Executive Secretary, Olufemi Adewole, alleged that the same group of marketers received import allocations in the first, second and third quarters of 2026.

He argued that the practice had sidelined other qualified operators and called for greater transparency and fairness in the licensing process.

“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.

DAPPMAN also disclosed that 72 of Nigeria’s 154 licensed petroleum depots recorded little or no trading activity in the past year, leaving operators with declining revenues and increasing losses.

The association said fuel imports should remain available as a backup despite the government’s focus on domestic refining, particularly during refinery maintenance or supply disruptions.

Responding, the Chairman of the House Committee, Hon. Ikenga Ugochinyere, said NMDPRA officials would be invited to explain the criteria used to issue import licences and determine whether the process complied with the Petroleum Industry Act.

Energy analyst Rasheed Adeleke said concentrating import opportunities among a few companies undermined the spirit of deregulation, while Centre for the Promotion of Private Enterprise CEO, Dr Muda Yusuf, called for a more transparent and inclusive licensing process.

NMDPRA Faces Allegations Over Fuel Import Licences

However, a senior NMDPRA official defended the agency, saying licences were issued based on specific performance indicators and regulatory requirements.

The official said approved companies had consistently met the standards required to support Nigeria’s fuel supply chain.