The Nigerian lubricant industry is on the edge. A brewing clash between local producers and the Federal Government now threatens more than 200,000 jobs, billions of naira in investments, and the survival of indigenous plants.
At the centre of the crisis is a fresh NMDPRA to Licence Lube Imports, Tackle Fake Products policy introduced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to digitise and regulate lubricant imports via a new Lubricant Importation Module.
The government claims the move will bridge the country’s 60% supply deficit and streamline oversight. But industry stakeholders strongly disagree, calling the move harmful, rushed, and devastating for local producers.
What the Government Is Trying to Fix
Nigeria currently produces only 40% of its lubricant needs locally. To close this gap, the NMDPRA is now issuing import permits through a digital platform integrated into the Lube Oil Blending Plant Portal and Nigeria Customs BÓdugwu interface.
Speaking at a stakeholders’ forum in Abuja, Farouk Ahmed, NMDPRA’s Authority Chief Executive (represented by Dr. Francis Ogaree), argued that the platform would ensure only quality-controlled products enter Nigeria’s market.
“This system isn’t about stifling trade,” Ahmed said. “It’s about promoting efficiency, transparency, and quality. We must ensure that imports are regulated to stop the influx of adulterated lubricants.”
Lubricant Producers Raise Alarm Over Job Losses
However, local lubricant manufacturers under the Lubricants Producers Association of Nigeria (LUPAN) are crying foul. They accuse the NMDPRA of enabling unqualified players often without blending plants to import cheap, substandard products that destroy engines and displace Nigerian-made lubricants.
According to LUPAN Chairman Mustapha Mohammed, the policy is already killing jobs and pushing plants toward collapse.
“Some of our members have lost between ₦2 billion and ₦10 billion. Our factories are shutting down. Workers are being sent home. This policy is killing us,” Mohammed declared.
He demanded that only registered blenders with functional facilities be allowed to import lubricants, not marketers who simply flood the market with inferior goods.
A Sector Operating Below 30% Capacity
LUPAN Executive Secretary Emeka Obidike reinforced these concerns, warning that most plants now run at less than 30% installed capacity, due to unfair competition and unchecked imports.
“This policy is a death sentence for existing blending plants. We’ve worked hard over the years to develop capacity. Now, we’re being choked out by imported products that add no value to the economy,” he said.
Obidike noted that Nigeria’s installed capacity is more than sufficient to meet local demand and even cater to exports across West Africa. But without supportive policies, that capacity remains underutilised.
Industry Fears a Surge in Crime and Economic Setback
Beyond job losses, the industry fears broader socio-economic fallout. Obidike warned that rising unemployment could lead to increased crime, while poor-quality lubricants threaten vehicles, generators, and industrial equipment.
“Recycled oils without additives are already flooding the market. Engines are failing, machines are breaking down, and economic waste is growing. It’s a silent sabotage of productivity,” he stated.
He also accused the regulatory agencies of contradicting the Tinubu administration’s ‘Renewed Hope’ industrialisation agenda, which aims to stimulate local production and reduce import dependency.
Government Insists on Oversight and Fiscal Control
In defence of the policy, the Nigeria Customs Service reaffirmed its commitment to implementing government regulations. Speaking on behalf of the Comptroller-General, Assistant Comptroller Aliyu Umar said Customs would ensure only certified lubricants enter Nigerian borders.
“We support the Federal Government’s goal to enforce quality. Our duty is to clear and monitor lubricant imports to prevent fake and harmful products,” Umar stated.
Customs’ backing gives weight to NMDPRA’s position, but it also puts more pressure on local producers already reeling from high energy costs, inflation, and policy uncertainty.
A Wider Battle Between Local Content and Global Supply
Analysts say the row is part of a larger challenge confronting Nigeria’s manufacturing sector: balancing self-sufficiency with immediate market needs. While regulators aim to prevent low-grade products, industry players argue that unrestricted imports will only deepen reliance on foreign supply and erode local capacity.
Without a clear framework to protect existing manufacturers while regulating imports, Nigeria risks losing its lubricant sector one of the few parts of its industrial base with genuine growth potential.
What’s at Stake: Industry, Jobs, and Investor Confidence
The Nigerian lubricant industry represents more than ₦500 billion in annual economic value, with over 200,000 direct and indirect jobs at stake. It also supports related sectors like logistics, packaging, and mechanical services.
The current policy direction, critics warn, could undo years of industrial progress if not urgently reviewed.
A Call for Balance and Collaboration
While the NMDPRA’s goal to ensure quality control and transparency is commendable, stakeholders urge the Federal Government to engage producers more deeply, protect local investments, and ensure only qualified importers participate in the new framework.
If Nigeria truly seeks to industrialise, then policies must enable not extinguish local value creation. Otherwise, job losses will mount, factories will go dark, and Nigeria will again miss the chance to turn oil wealth into national wealth.
