Marketers Accuse NMDPRA of Favoritism in Fuel Import Licence Allocation

By Victor Idajil

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is facing criticism from petroleum marketers who allege that fuel import licences are being issued to a small group of companies, raising questions about fairness and competition in Nigeria’s deregulated downstream sector.

The issue came up during an interactive session with the House of Representatives Committee on Petroleum Resources, Downstream. Key industry groups 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, MEMAN, presented memoranda on challenges in the sector.

DAPPMAN told lawmakers that import licences issued by the NMDPRA for the first, second and third quarters of 2026 went repeatedly to the same marketers. The association said this sidelines other qualified operators who also have the capacity to import petroleum products.

Presenting DAPPMAN’s position, Executive Secretary Olufemi Adewole accused the regulator of failing to ensure a level playing field.

“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.

He argued that the licensing process should reflect equal opportunity, especially now that government policy is pushing for a fully deregulated market under the Petroleum Industry Act, PIA.

DAPPMAN also said the current pattern is hurting depot owners. According to data obtained from the NMDPRA, at least 72 out of Nigeria’s 154 licensed depots recorded little or no trading activity in the past year, leaving many operators with declining revenues and rising losses.

The association stressed that while local refining remains a priority, importation should still serve as a backup to cover supply gaps from refinery maintenance, logistics issues or sudden disruptions.

Beyond licences, DAPPMAN raised concerns about duplicated port charges and the continued billing of domestic petroleum transactions in U.S. dollars, despite government directives discouraging foreign currency charges for local operations.

 
Chairman of the House Committee, Hon. Ikenga Ugochinyere, said the panel would investigate the allegations and invite NMDPRA officials to explain the criteria used for issuing import licences.

“We have taken note of your concerns regarding the lopsided issuance of import licences. These questions will be raised when the NMDPRA appears before the committee to explain the basis upon which the allocations were made,” Ugochinyere said.

  
Energy analyst Rasheed Adeleke said the goal of deregulation and subsidy removal was to open the market to all qualified players.

“The essence of deregulation of the downstream sector and the removal of fuel subsidy by the Federal Government is obviously lost if imports are concentrated on a few marketers and importers,” he said.

He cautioned that policies which distort competition could undermine the gains made since subsidy removal and discourage investment.

Also reacting, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, CPPE, urged the NMDPRA to be more open in its licensing process. 

He said regulators must protect the interests of all stakeholders and create an environment that promotes efficiency and healthy competition. According to him, transparent procedures will build investor confidence and show that decisions are based on objective criteria, not preferential treatment.

  
The official spokesperson of the NMDPRA, George Ene-Ita, could not be reached for comment. However, a senior official who asked not to be named defended the current process.

The official said companies granted licences met all regulatory conditions set by the authority, and that approvals are not arbitrary. 

“We have some metrics these companies need to meet before they are given licences. The activities of Dangote Refinery show that the number of licences required is limited. The Authority has confidence in the marketers that continue to receive approvals because they have consistently met the required standards,” the official said.