The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Nigerian government to carefully consider granting import licences to petroleum traders for refined products, fearing it could undercut domestic refiners and flood the market with substandard imports. The appeal comes as a debate rages between the Dangote Petroleum Refinery and independent petroleum marketers.
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) recently expressed their intentions to import Premium Motor Spirit (petrol) and offer it at prices lower than Dangote Refinery’s current rate of N990 per litre. PETROAN awaits regulatory approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), while the Independent Petroleum Marketers Association of Nigeria (IPMAN) has already submitted its application.
CORAN Publicity Secretary Eche Idoko voiced concerns in an interview, alleging that foreign traders aim to use Nigeria as a dumping ground for lower-quality fuel rejected by European markets. “The NMDPRA should not issue import licences for products that we can refine domestically. The issuance of these licences only serves to undermine our budding refining industry,” Idoko warned, adding that unrestricted importation could damage Nigeria’s emerging local refining market and economy.
Idoko also highlighted that Nigeria’s Petroleum Industry Act (PIA) supports local capacity by advocating for “backward integration,” which mandates curbing imports when sufficient in-country refining capacity exists. He argued that foreign traders are leveraging local marketers to gain access to Nigeria’s lucrative market without investing in its infrastructure. “They should build refineries in Nigeria if they want to sell here, instead of bringing cheap, substandard products,” he insisted.
Idoko also called for governmental support, noting, “If the government truly wants to support Nigerians who are investing in local refining, they must protect the industry from foreign competition aimed solely at exploiting the market. The only way to reduce energy costs is through domestic refining.”
With three additional refineries set to come online in Nigeria by next year, Idoko questioned why foreign entities are not investing in the country’s infrastructure, including Nigeria’s existing NNPC refineries that are available for leasing.
The ongoing dialogue reflects Nigeria’s complex struggle between encouraging domestic production and managing market pressures from foreign importers. CORAN’s stance aligns with the broader call for Nigeria to prioritise local investment and promote economic independence in the oil and gas sector.
