The Nigerian government has decided to suspend the issuance of fuel import licenses, a move aimed at promoting local petrol production and reducing the country's dependence on imports.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), no licenses have been issued since February, as local production is now considered sufficient to meet national demand. This decision is part of the Petroleum Industry Act (PIA) of 2021, which states that imports should only be allowed if local production cannot cover demand.

The Dangote Refinery, Africa's largest refinery with a capacity of 650,000 barrels per day, now supplies the majority of petrol consumed in the country. Recent reports indicate it covers up to 92 percent of daily demand.

The government sees several advantages in this measure: reducing foreign currency spending on imports, supporting the local industrial sector, and strengthening Nigeria's energy sovereignty. However, some market players warn of the risk of domination by a single actor if imports remain suspended for too long.

In summary, Nigeria is betting on local production to secure its fuel supply, a strategy that could transform its energy market and reduce reliance on foreign sources.