The Crude Oil Refinery Owners Association of Nigeria has advised the Federal Government to exercise caution in issuing import licences to petroleum traders seeking to bring refined products into Nigeria.
This warning from CORAN emerges amid rising tensions between the newly operational Dangote Petroleum Refinery and other oil marketers who claim they can supply petrol at a price lower than the N990 per litre Dangote offers.
Notably, the Petroleum Products Retail Outlet Owners Association of Nigeria recently stated its intent to import Premium Motor Spirit and sell it at a more affordable rate than Dangote’s.
They indicated they are currently awaiting the necessary approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Likewise, the Independent Petroleum Marketers Association of Nigeria shared that it’s working on securing its own import licence with the NMDPRA, noting it might prove more economical to import petrol than to rely on Dangote’s supply.
In an interview The PUNCH, Publicity Secretary for CORAN, Eche Idoko, expressed concerns that many of these marketers are intent on importing “substandard petrol” into Nigeria, turning the nation’s fuel market into a potential dumping ground for low-quality petroleum products rejected by European countries.
“We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products that we have sufficiency in,” Idoko emphasized.
He further stated, “Even if they are issuing, it should be based on the shortfall, not to say you are importing so that you can compete.”
Idoko added that CORAN’s concerns are directed towards protecting Nigeria’s refining industry.
“We are not telling NMDPRA how to do its job. We are simply telling NMDPRA to protect the Nigerian domestic refining market,” he clarified. According to him, providing licences to foreign petroleum traders undermines the potential growth of Nigeria’s refining sector. “The continuous issuance of import licences will only kill our industry. The government must try and protect the nascent refining industry that is emerging in Nigeria, and they can do that by desisting from giving import licences to these conglomerates that are just interested in making Nigeria a market for their substandard products,” he added.
In response to suggestions that the Petroleum Industry Act permits the NMDPRA to issue import licences, Idoko pointed out that the PIA also endorses “backward integration,” a concept that promotes building domestic capabilities rather than relying on foreign imports. “PIA says any product we have in-country refining capacity in, they should stop issuing licences,” he said.
Idoko expressed frustration that foreign traders still hold licences to import fuel into Nigeria.
He argued that this practice undercuts Nigeria’s refining sector and ultimately hampers the country’s broader economic goals.
“There is nothing that can be better than building domestic refining capacity,” he asserted, stressing that developing local refineries is essential for Nigeria’s economic resilience.
He also criticized international traders for their focus on exploiting the Nigerian market without committing to local investment.
“We are not saying they cannot sell in Nigeria. What we are saying is that if you want to sell, come and build your refinery in Nigeria. Create value in Nigeria. Don’t come and dump your substandard products here because you can’t sell them in Europe again,” Idoko argued.
Idoko challenged claims from foreign traders that their imported fuel is cheaper.”You’re saying you’re bringing cheaper products, how cheap is this product as a matter of fact? You are bringing a lesser product and selling to us at N900, and you say it’s cheap,” he pointed out, while noting that Nigeria will soon have multiple refineries, not just Dangote’s, providing PMS by next year.
He questioned why international firms are not investing in or leasing Nigerian refineries, including the three available through NNPC. “NNPC has three refineries that are up for lease. Why are they not coming to take them so they can supply?” he queried.
Ultimately, Idoko emphasized that reducing Nigeria’s dependence on imported fuel would be beneficial for the nation.
“What we are saying is for the good of the people. We don’t want people to use us as a market without investing in the economy of Nigeria,” he remarked, stressing that foreign investment in local refining would be far more advantageous than foreign importation. He concluded, “The only solution to energy cost is local refining.”
