The Federal Government of Nigeria has officially sanctioned the return of private fuel import licenses, marking a significant policy shift as the Dangote Refinery FX losses amid US Iran war create a supply bottleneck in the national energy sector. This decision, announced late Thursday, March 26, 2026, comes as the global energy market reels from the escalating military conflict between the United States and Iran, which has sent crude oil prices soaring and destabilized international shipping routes.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that the move is an emergency measure to prevent a total collapse of the domestic fuel supply chain, as the nation’s primary local supplier struggles to navigate the volatility of the foreign exchange market.
Aliko Dangote, Chairman of the Dangote Group, disclosed during a high-level stakeholders’ meeting in Lagos that his multi-billion dollar refinery is currently facing unprecedented financial headwinds due to the rapid depreciation of the Naira against the US Dollar. He revealed that the facility has incurred staggering foreign exchange losses, primarily because the cost of procuring crude oil for refining is denominated in dollars, while the finished products are sold locally in Naira.
The ongoing war in the Middle East has exacerbated these issues, as the surge in global oil prices has forced the refinery to seek higher volumes of credit to maintain its daily production capacity of 650,000 barrels. Dangote noted that without a dedicated FX window or a more stable currency environment, the refinery’s ability to remain the sole provider of Premium Motor Spirit (PMS) for Nigeria is under immediate threat.
The geopolitical tension between Washington and Tehran has acted as a catalyst for this domestic energy crisis, with the Strait of Hormuz seeing frequent disruptions that have impacted global logistics. For Nigeria, this has translated into higher landing costs for any potential imports and increased operational costs for local refining.
By reopening the doors for independent marketers to import refined petroleum products, the Federal Government aims to create a buffer against potential scarcity. This is a stark reversal from the administration’s earlier stance, which sought to end fuel imports entirely to support local production at the Ibeju-Lekki facility. Marketers have already begun applying for new licenses, though they warned that the price at the pump may see further hikes to reflect current international market realities.
The Ministry of Finance and the Central Bank of Nigeria are reportedly working on a collaborative framework to assist the Dangote Refinery in mitigating its currency-related liabilities. However, economists suggest that the sheer scale of the Dangote Refinery FX losses amid US Iran war makes a quick fix unlikely without a significant appreciation of the Naira.
The refinery’s management has emphasized that while they remain committed to the national goal of energy self-sufficiency, the current economic climate requires a more flexible approach to pricing and currency access. In the interim, the government has assured citizens that the reintroduction of imports will not lead to the return of the controversial fuel subsidy regime, insisting that the market will remain fully deregulated.
As the US-Iran conflict shows no signs of immediate de-escalation, the Nigerian energy sector remains on high alert. The dual strategy of supporting local refining while allowing competitive imports is seen by many as a necessary pragmatic step to protect the economy from external shocks.
While the Dangote Refinery continues to optimize its operations, the focus for the coming weeks will be on how quickly independent marketers can mobilize their supply chains to complement local production. The government has pledged to monitor the situation closely, ensuring that the transition does not result in artificial hoarding or price gouging by opportunistic players in the downstream sector.