The decision by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to resume issuing petrol import licences has drawn criticism from an industry advocacy group, which warns the move could undermine domestic refining and expose the market to substandard fuel.

In a statement issued on Wednesday, the Energy Transparency and Market Justice Initiative (ETMJI) described the development as a policy reversal that risks weakening recent gains in local supply while encouraging renewed dependence on imports.

The regulator had earlier suspended the issuance of import licences, citing improved domestic refining capacity. However, following supply disruptions linked to tensions in the Middle East, fresh approvals were granted to six marketers to import approximately 180,000 metric tonnes of petrol.

While the NMDPRA has framed the measure as temporary, aimed at stabilising supply, ETMJI argued that the decision reflects deeper inconsistencies in regulatory direction.

Dr Salako Kareem, who signed the statement, warned that reopening the import window without stringent safeguards could allow lower-quality petroleum products into the Nigerian market.

He said emergency interventions that rely on imports risk creating long-term challenges for consumers and the regulatory system.

“What is being presented as a quick solution may introduce more complex risks, particularly around quality control and market integrity,” he said.

The group expressed concern that renewed import activity could revive longstanding issues such as product adulteration and regulatory loopholes exploited by market operators.

ETMJI also warned that the move could send mixed signals to investors in domestic refining, at a time when Nigeria is seeking to reduce reliance on imported fuel.

According to the group, policy inconsistency, shifting between import substitution and renewed importation, could discourage long-term investment and planning within the sector.

“This creates uncertainty for investors who have committed resources to local refining capacity,” Kareem said, adding that stable and predictable policies are essential for industry growth.

Beyond quality concerns, the group highlighted potential economic effects, noting that increased imports could place additional pressure on foreign exchange and raise landing costs, which are often passed on to consumers.

It argued that addressing structural inefficiencies within the domestic supply chain, including logistics and distribution, would provide a more sustainable solution than reverting to imports.

ETMJI called on the NMDPRA to provide clarity on the criteria used in issuing the new licences, as well as the safeguards in place to ensure compliance with fuel quality standards.

The group also urged the federal government to align regulatory decisions with broader energy transition and economic diversification goals, warning that inconsistent policy direction could erode public trust.

As Nigeria navigates ongoing pressures within its energy sector, the debate highlights a central challenge: balancing immediate supply needs with long-term goals of self-sufficiency and regulatory credibility.

For stakeholders, the effectiveness of the latest intervention will depend not only on its ability to stabilise supply, but also on whether it preserves market standards and supports the growth of domestic refining capacity.