The Crude Oil Refinery Owners Association of Nigeria has cautioned the Federal Government against freely granting import licences to petroleum traders for bringing in refined products.
This warning follows ongoing disputes between Dangote Petroleum Refinery and independent oil marketers over the cost of Premium Motor Spirit, also known as petrol.
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria have claimed they could import petrol and sell it for less than the N990 per litre price set by the Dangote Refinery. Independent marketers are also seeking licences, arguing that importing could be cheaper than purchasing locally refined products.
However, CORAN’s Publicity Secretary, Eche Idoko, expressed concerns over imported fuel quality. He claimed that some traders were treating Nigeria as a dumping ground for low-quality petroleum products that fail standards in Europe. “The continuous issuance of import licences will only kill our industry,” he said. “The government must protect our emerging refining industry.”
Idoko explained that CORAN was not instructing regulatory bodies on how to manage licences but emphasized the need for caution. “We are simply telling NMDPRA to protect the Nigerian domestic refining market,” he said, referring to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
According to Idoko, the Petroleum Industry Act supports “backward integration,” encouraging in-country refining and reducing imports when local capacity is sufficient. He argued that foreign companies interested in selling fuel in Nigeria should be required to set up their refineries in the country instead of importing.
“There is nothing that can be better than building domestic refining capacity,” Idoko stated, adding, “People should be talking about building refineries, not importing products.” He also suggested that these foreign companies invest in local refineries, mentioning that three additional refineries would be producing petrol domestically by next year.
“We’re not against competition, but this shouldn’t mean using Nigeria as a market without giving back,” Idoko emphasized. He argued that supporting local refineries was the key to reducing fuel costs and stabilizing the economy.
Idoko urged the government to focus on policies that foster domestic investment in refining, noting, “Opening up the downstream to importation will continue to affect us. The only solution to energy costs is local refining.”
