The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Federal Government to tread carefully in issuing import licences for refined petroleum products, warning that an influx of imported fuel could stifle the country’s burgeoning refining industry. The association’s warning comes amid rising tensions between Dangote Petroleum Refinery and Nigerian oil marketers, who argue they can import Premium Motor Spirit (petrol) at prices lower than Dangote’s N990 per litre.
Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) recently announced its intention to seek approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import fuel and compete on price. Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) indicated its application to import fuel independently, citing potential cost benefits over buying locally refined products.
However, CORAN’s Publicity Secretary, Eche Idoko, expressed deep concern over the potential influx of imported petrol, suggesting that foreign traders were using Nigeria as a “dumping ground” for substandard petroleum products. “We categorically urge the NMDPRA to halt the issuing of import licences for products that we already have sufficient capacity to refine,” Idoko said, adding, “Even if imports are deemed necessary, they should only cover actual shortfalls.”
While acknowledging that the Petroleum Industry Act (PIA) permits the issuance of import licences, Idoko pointed to a clause within the act that supports “backward integration” — a policy intended to build and protect local production capacity. According to Idoko, continued reliance on imported fuel undermines efforts to expand Nigeria’s refining sector, which is crucial for economic recovery. “There is nothing better for Nigeria than building a strong domestic refining capacity,” he said, arguing that granting licences to European traders will only harm the country’s nascent refineries.
Idoko called on foreign petroleum traders to invest directly in Nigeria rather than using the market as an outlet for rejected products. “If they want to sell in Nigeria, let them build refineries here and contribute to our economy. Importing cheaper products without investing in local capacity offers only a short-term solution and does not align with Nigeria’s long-term energy security goals.”
CORAN’s spokesperson highlighted that Nigeria’s refining capacity is set to expand, with three new refineries expected to come online next year. Yet, he noted that foreign traders remain focused on imports rather than building or acquiring refining assets within Nigeria. “The NNPC has three refineries available for lease — why aren’t these foreign companies taking steps to invest here?” he asked.
In a final appeal, Idoko emphasised that prioritising local production would benefit Nigeria’s economy and reduce energy costs in the long term. “The only lasting solution to our energy costs lies in local refining,” he said.
