In a bold step to sanitise Nigeria’s lubricant market, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced it will begin issuing licences for lubricant importation. The move, according to regulators, aims to flush out substandard and unauthorised products circulating across the country.
Speaking at a stakeholder engagement in Abuja on Wednesday, NMDPRA’s Chief Executive, Mr. Farouk Ahmed represented by the Executive Director of HPPITI, Mr. Francis Ogaree said the new process aligns with the Petroleum Industry Act (PIA) 2021. The initiative, he explained, will strengthen regulatory oversight, improve product quality, and protect both consumers and machinery.
NMDPRA Launches Lubricant Importation Portal
To drive the change, NMDPRA also rolled out a Lubricant Importation Module on the Lube Oil Blending Plant (LOBP) Portal. This tool is designed to make application, approval, and monitoring easier for legitimate importers. It is also fully integrated with the Nigeria Customs Service’s BÓdugwu platform to ensure real-time tracking and compliance enforcement.
According to Ahmed, “This system creates a transparent and traceable licensing process. We want only authorised and compliant players in the lubricant supply chain.”
Industry Goals: Local Production Meets Quality Assurance
NMDPRA says the ultimate goal is to support local production by limiting access to the market for fake or inferior imports. “We’re not here to stifle trade,” Ahmed clarified, “but to ensure Nigeria moves closer to self-sufficiency with high-quality products.”
This policy shift is also in line with President Bola Tinubu’s industrialisation plan, which encourages backward integration and a stronger local manufacturing base.
Stakeholders React
However, not everyone is on board with the new system. Mr. Emeka Obidike, Executive Director of the Lubricant Producers Association of Nigeria (LUPAN), warned that the licensing programme could backfire. According to him, it may discourage investment, threaten over 200,000 jobs, and disrupt gains already recorded by existing blending plants.
“It contradicts the government’s own backward integration strategy,” Obidike argued. “Instead of supporting local manufacturers, this could open the floodgates for unfair competition.”
Meanwhile, Mrs. Ngozi Nwankwo, Director of Liquids at HPPITI, assured stakeholders that the regulation would not favour any group but focus on eliminating fake products. She said only companies with proper documentation, traceability, and operational capacity would be granted import licences.
Bottom Line: What This Means for Consumers
If fully implemented, this licensing regime could improve lubricant quality, reduce engine failures, and protect consumers from harmful products. Additionally, it signals a growing commitment by NMDPRA to enforce compliance and raise standards across the downstream value chain.
As Nigeria continues to refine its petroleum regulatory framework under the PIA, stakeholders are closely watching how this move balances consumer safety, investor confidence, and local industry support.
