The Crude Oil Refinery Owners Association of Nigeria has urged the Federal Government to exercise caution in issuing import licences to petroleum traders for refined products.
The warning comes amidst ongoing tensions between the Dangote Petroleum Refinery and oil marketers
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria have expressed their readiness to import Premium Motor Spirit and sell it at prices lower than the current ₦990 per liter offered by the Dangote refinery.
PETROAN noted that approval was awaiting from the Nigerian Midstream and Downstream Petroleum Regulatory Authority to proceed.
Similarly, the Independent Petroleum Marketers Association of Nigeria disclosed that it was securing its import licence from the NMDPRA, suggesting that importing fuel could be more cost-effective than purchasing from the Dangote refinery.
CORAN’s Publicity Secretary, Eche Idoko, voiced concerns about the potential influx of substandard petrol into the country.
He warned that some international traders were intent on using Nigeria as a market for cheap petroleum products that had been rejected in Europe.
We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products we have sufficiency in. Even if they are issuing, it should be based on the shortfall, not to say you are importing so that you can compete.
“We are not telling NMDPRA how to do its job. We are simply telling NMDPRA to protect the Nigerian domestic refining market. And whatever they have to do that they think is best, they should do it. But I do not think giving licences to European traders is good enough to defend the Nigerian market.
“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,” the CORAN spokesman stated.
Reminded that the Petroleum Industry Act does not stop the NMDPRA from issuing import licences, Idoko replied that the same PIA provided for what he termed backward integration.
“PIA says any product we have in-country refining capacity in, they should stop issuing licences,” he said.
He noted that CORAN is deeply concerned that quite a few international traders still have the licence to import fuel.
