News

Nigerian Refinery Owners Urge FG To Limit Import Licences

Published

2 months ago

Nov 10, 2024.

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has cautioned the Federal Government against issuing import licences to petroleum traders, warning it could harm Nigeria’s nascent refining sector.

CORAN’s Publicity Secretary, Eche Idoko, voiced concerns that some marketers were determined to import substandard petrol, using Nigeria as a dumping ground for rejected products from Europe.

EDITOR’S PICKS

EKO HOT BLOG reports that his remarks followed statements from the Petroleum Products Retail Outlet Owners Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria, both of which suggested that imported petrol might be cheaper than the N990/litre price offered by Dangote Refinery.

Idoko argued that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should limit import licences, emphasizing that imports should only fill any supply shortfall rather than compete with local refineries.

He pointed to provisions in the Petroleum Industry Act (PIA) that encourage “backward integration,” suggesting the Act supports prioritizing domestically refined products.

“The issuance of licences to import foreign fuel threatens our local refining industry,” Idoko stated, stressing that sustained importation undermines Nigeria’s economic recovery and stunts the growth of local refineries.

Refinery Import Licences

He highlighted CORAN’s dedication to domestic refining as crucial for energy security, urging foreign traders to invest directly by establishing refineries in Nigeria instead of merely selling their rejected products.

Idoko also noted the planned expansion of Nigeria’s refining capacity, with three more refineries expected to produce Premium Motor Spirit (PMS) by next year.

He urged foreign traders to invest in these local projects rather than focusing solely on imports. “Governments globally protect their industries.

For Nigeria, local refining is key to controlling energy costs and ensuring economic stability,” he concluded, calling for greater support to safeguard the country’s emerging refining sector.