The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is facing criticism from petroleum marketers over allegations that it has concentrated fuel import licences in the hands of a few companies, raising concerns about transparency and competition in Nigeria’s deregulated downstream petroleum sector.

The allegations emerged during an interactive session organised by the House of Representatives Committee on Petroleum Resources (Downstream), where 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 (MEMAN), presented memoranda on challenges facing the sector.

DAPPMAN alleged that import licences issued by the NMDPRA for the first, second and third quarters of 2026 were repeatedly granted to the same companies, excluding other qualified marketers with the capacity to import petroleum products.

Presenting the association’s memorandum, DAPPMAN Executive Secretary, Olufemi Adewole, argued that the practice undermines competition, discourages investment and creates an uneven playing field in a market expected to operate under the deregulation framework established by the Petroleum Industry Act (PIA).

“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 maintained that the licensing process should reflect fairness and equal opportunity for all qualified operators.

DAPPMAN also claimed that the current licensing pattern had adversely affected depot owners, citing NMDPRA data which showed that 72 of Nigeria’s 154 licensed petroleum depots recorded little or no trading activity over the past year, leaving many operators with declining revenues and mounting operational losses.

The association stressed that while domestic refining remains a national priority, fuel importation should continue to serve as a contingency measure to address supply gaps caused by refinery maintenance, logistics challenges or other disruptions.

It also raised concerns over what it described as duplicated port charges and the continued billing of domestic petroleum transactions in United States dollars despite the Federal Government’s policy discouraging foreign currency-denominated charges for local operations.

Responding to the concerns, Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, assured stakeholders that the allegations would be thoroughly investigated.

He said the committee would invite the NMDPRA to explain the criteria used in issuing import licences and determine whether the process complies with the objectives of the Petroleum Industry Act.

“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 concentrating import opportunities among a few operators contradicts the objectives of deregulation and subsidy removal, warning that it could discourage future investment in the downstream sector.

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

Similarly, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, urged the regulator to adopt a more transparent and inclusive licensing framework.

According to him, open and objective licensing procedures would strengthen investor confidence and ensure healthy competition in the sector.

While the NMDPRA’s spokesperson, George Ene-Ita, could not be reached for comment, a senior official of the authority, who spoke anonymously, defended the licensing process.

The official said import licences are issued only to companies that meet established regulatory requirements and performance benchmarks.

“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.