ABUJA, Nigeria (VOICE OF NAIJA)- The Crude Oil Refinery Owners Association of Nigeria (CORAN) has cautioned the Federal Government to exercise prudence in issuing import licenses to petroleum traders for refined products.
This statement from CORAN comes amid ongoing tensions between the Dangote Petroleum Refinery and oil marketers.
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have stated their intention to import Premium Motor Spirit (petrol) at a price lower than the N990 per liter currently offered by the Dangote refinery, noting that they are awaiting approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also confirmed that it is in the process of securing an import license with the NMDPRA, suggesting that importing may be more cost-effective than purchasing from the Dangote refinery.
However, in an interview with The Punch the Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, expressed concerns over the marketers’ continued interest in importing what he described as substandard petrol.
He alleged that some international traders were intent on using the Nigerian market as a dumping ground for low-quality petroleum products rejected in Europe.
“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.
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“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 licenses, Idoko responded by stating that the same PIA includes provisions for what he referred to as backward integration.
“PIA says any product we have in-country refining capacity in, they should stop issuing licences,“ he said.
He expressed concern that many international traders still hold licenses to import fuel, a situation he described as harmful to the growth of the domestic refining sector.
According to him, this could ultimately hinder the country’s economic recovery and long-term development plans.
“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.
Idoko stated that international traders are using local traders as pawns in their trade war, expressing interest in the Nigerian market but refusing to make investments in it.
“We are not saying they cannot sell in Nigeria. What we are saying is that if you want to sell, come and build your refinery in Nigeria. Create value in Nigeria. Don’t come and dump your substandard products here because you can’t sell them in Europe again.
“You’re saying you’re bringing cheaper products, how cheap is this product as a matter of fact? You are bringing a lesser product and selling to us at N900 and you say it’s cheap. I’m not holding a brief for Dangote. As I keep saying, we have more than Dangote as a refinery.”
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“By next year, we will have three more refineries producing PMS in Nigeria. Why are we not telling these guys to come and set up their refineries or buy into any of the refineries in Nigeria? Why are they not buying into other refineries? NNPC has three refineries that are up for lease. Why are they not coming to take them so they can supply?“ he emphasised.
Idoko said that stopping fuel importation is for the good of the nation.
“What we are saying is for the good of the people. We don’t want people to use us as a market without investing in the economy of Nigeria. We need foreign direct investment to grow the Nigerian economy.
“If the government wants to help Nigerians who have taken the bull by the horns to invest their hard-earned resources, then the government must protect them. World over, governments protect their local industries. Opening up the downstream to importation will continue to affect us. The only solution to energy cost is local refining,“ he stated.