The Crude Oil Refinery Owners Association of Nigeria has cautioned the Federal Government to exercise restraint in granting import licences for refined petroleum products, amid ongoing tensions between the Dangote Petroleum Refinery and domestic oil marketers.
CORAN’s statement comes in response to recent claims by the Petroleum Products Retail Outlet Owners Association of Nigeria, which said it was preparing to import Premium Motor Spirit and sell it at a price lower than the N990 per litre offered by the Dangote refinery.
PETROAN added that it was awaiting approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its importation plans.
Similarly, the Independent Petroleum Marketers Association of Nigeria revealed that it was in the process of securing an import licence from NMDPRA, suggesting that importing fuel could be more cost-effective than sourcing it from Dangote’s refinery.
CORAN expressed concerns that a surge in fuel imports could undermine efforts to support local refineries and disrupt the domestic market.
However, the Publicity Secretary of CORAN, Eche Idoko expressed concerns that the marketers were still intent on importing what he described as substandard petrol into the country, raising fears over the potential impact on fuel quality and safety.
According to Idoko, some international traders were determined to use the Nigerian market as a dumping ground for cheap petroleum products that had been rejected in Europe, further exacerbating concerns about the quality and safety of imported fuel.
“We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products that 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.
“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.
When reminded that the Petroleum Industry Act does not prevent the NMDPRA from issuing import licences, Idoko responded that the same PIA also emphasized “backward integration.”
He argued that the Act was designed to encourage domestic refining capacity, rather than relying on imports, to ensure a more sustainable and secure petroleum sector.
“PIA says any product we have in-country refining capacity in, they should stop issuing licences,“ he said.
Idoko noted that CORAN is deeply concerned that many international traders still hold licences to import fuel, which he argued is detrimental to the development of Nigeria’s domestic refining sector.
He stressed that this continued reliance on fuel imports could undermine efforts to strengthen local refineries, ultimately hindering the country’s economic recovery and long-term growth strategy.
“There is nothing that can be better than building domestic refining capacity. The Nigerian government is not against local refining. People should be talking about building refineries and not importing products,” he explained.
