NMDPRA Threatens Licence Revocation over Fuel Under-Dispensing

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has threatened to revoke the licences of petrol stations that persistently or seriously under-dispense petroleum products, escalating its enforcement against outlets that short-change consumers.

The regulator issued the warning in a circular on Tuesday in Abuja after observing cases of under-dispensing at retail outlets across the country.

NMDPRA directed all retail outlet operators to immediately calibrate and verify their fuel dispensers and totalisers to ensure that the equipment accurately measures the quantity of products sold.

“This is intended to guarantee accurate measurement and ensure that consumers receive the full value of the product they pay for,” the authority said.

The latest directive comes after a series of enforcement actions in different parts of the country, showing that the regulator’s campaign against inaccurate fuel dispensing has moved beyond warnings to the sealing of affected outlets.

Crackdown follows repeated violations

In February 2025, NMDPRA sealed seven filling stations in Kogi and two in Ogun over alleged under-dispensing and other infractions. The Kogi operation followed inspections of 50 filling stations, with the regulator warning that marketers caught under-dispensing would face sanctions.

The enforcement continued in February 2026, when NMDPRA sealed 11 petrol stations in Rivers State for alleged under-dispensing, failed pumps and other regulatory breaches.

The action was carried out under its “Operation One Litre for One Litre” surveillance initiative, which was designed to ensure customers receive the quantity of fuel for which they pay.

At the time, NMDPRA’s South-South coordinator, Victor Owodiasa, warned that stations found to be persistent or “perpetual” offenders could have their licences recommended for revocation.

The regulator also said operators were expected to check their own meters rather than wait for regulatory inspections to uncover faults, noting that inaccurate dispensing could sometimes result from mechanical errors as well as deliberate practices.

NMDPRA stepped up the enforcement again in July 2026, when it sealed two filling stations in Ogun State over alleged under-dispensing and other sharp practices. The authority said the action followed repeated breaches of regulatory requirements by the affected operators.

The latest nationwide directive now puts the responsibility on all retail operators to verify their dispensing equipment immediately, while making clear that repeated or serious breaches could have consequences beyond temporary closure.

“Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s licence, in line with NMDPRA’s regulations,” the authority said.

NMDPRA said it had intensified inspections and enforcement nationwide and that outlets found under-dispensing or operating with improperly calibrated equipment would be required to take immediate corrective action.

The regulator also called on the Major Energy Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria and Petroleum Products Retail Outlets Owners Association of Nigeria to notify their members of the directive and support compliance.

The associations represent major segments of Nigeria’s petroleum marketing and retail industry.

NMDPRA explained that the enforcement was aimed at protecting consumers, improving transparency and maintaining the integrity of petroleum product transactions nationwide.