The Crude Oil Refiners Association of Nigeria (CORAN) has questioned the continued importation of petrol into the country, insisting that there is enough locally produced fuel to meet demand.
Speaking to Nairametrics, CORAN’s Publicity Secretary, Eche Idoko, revealed that as of February 20, the Dangote Petroleum Refinery had a stock of 500 million litres of Premium Motor Spirit (PMS), commonly known as petrol.
Why is Nigeria Still Importing Petrol?
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently defended the decision to issue import licences, claiming that local refineries can only supply less than 50% of the country’s daily fuel needs. Nigeria consumes about 50 million litres of petrol daily, according to the Executive Director of Distribution Systems, Storage, and Retailing Infrastructure, Ogbugo Ukoha.
However, Idoko disagrees with this claim, arguing that Dangote’s stock alone can sustain the nation for at least ten days, not to mention contributions from other modular refineries.
Dangote Fuel is Cheaper
Idoko also highlighted that petrol from the Dangote Refinery is cheaper than what is currently being sold by the Nigerian National Petroleum Company Limited (NNPCL).
“Why should we continue importing when we already have a local refinery supplying at lower prices? Marketers can simply buy from Dangote instead of relying on imports,” he questioned.
According to him, MRS, a major oil marketer sourcing from Dangote, currently sells its fuel at a lower price than NNPCL outlets. He urged the government to promote local refining to align with the country’s local content and backward integration policies.
Legal Battle Over Fuel Importation
The controversy over petrol importation has led to a legal battle. The Dangote Refinery has taken the Nigerian National Petroleum Company Limited (NNPCL), NMDPRA, and several oil marketers to court, challenging the continued issuance of import licences.
The refinery is seeking N100 billion in damages and asking the court to revoke the licences granted to NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and other firms.
Challenges Facing Local Refineries
Despite Nigeria having one of the world’s largest refineries, local refiners still struggle due to crude oil supply issues. Many of these refineries, including Dangote, have been forced to import crude oil because of inconsistent local supply.
The crude-for-Naira initiative, designed to make crude oil available to local refineries, has been poorly implemented. As a result, some refineries buy crude in US dollars, making fuel production more expensive.
The Way Forward
Experts argue that the government must prioritise local refining to protect Nigerians from fluctuating global oil prices. If local refineries are well-supported, Nigeria could finally end its reliance on fuel imports and stabilise petrol prices.
With 500 million litres of petrol sitting in Dangote’s tanks, many believe that continued importation is not just unnecessary but also harmful to Nigeria’s economy.
