ABUJA, Nigeria (VOICE OF NAIJA)-Former Chairman of the Society of Petroleum Engineers (SPE), Dr Joseph Nwakwue says the expansion of import licences for oil marketers is necessary to strengthen competition and ensure fair pricing in the downstream petroleum sector.
Nwakwue stated this in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.
The energy expert, while backing the Federal Government’s approval of six additional licences for oil marketers to import petroleum products, said the move would improve supply stability and encourage price competition in the deregulated market.
He stressed that consumer welfare must remain central to policy decisions, adding that only strong competition can deliver fair pump prices.
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“I believe consumers’ welfare is the prime objective of the policy. Fair pricing is what works for consumers at the pump, and we need competition,” he said.
“To get fair pricing in a deregulated market, price contestation is required.”
He added that importation should remain open within a competitive market structure, noting that even with rising local production, imports would continue to play a stabilising role until domestic supply becomes fully reliable.
Similarly, Dr Ayodele Oni, Partner and Head of Energy and Natural Resources Practice Group at Bloomfield Law Practice, said the decision aligns with the provisions of the Petroleum Industry Act (PIA).
Oni explained that the law permits importation where supply gaps exist, noting that local refineries are still unable to fully meet national demand despite ongoing improvements.
“The Petroleum Industry Act allows for importation, especially where there are supply shortfalls,” he said.
He added that issuing limited import licences is necessary to maintain energy security amid current market uncertainties.
“Only a few firms are allowed to import refined petroleum, provided the products are affordable and meet regulatory standards.
“These measures are interim arrangements to manage a challenging period,” Oni added.
The Federal Government on March 11 approved six new import licences for oil marketers following concerns over supply disruptions linked to global geopolitical tensions.
The development reflects efforts to balance reduced reliance on imported fuel with the need to ensure steady domestic supply as local refining capacity continues to improve.
A report by S&P Global indicated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved licences covering about 180,000 metric tonnes of Premium Motor Spirit.
(NAN)