Marketers Caution FG Against Hasty Fuel Import Ban

Marketers, including the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlet Owners Association of Nigeria, have warned that Nigeria cannot ban fuel importation yet due to insufficient refining capacity. They argue that such a move could lead to fuel scarcity and price hikes. Despite claims of increased refining capacity and Aliko Dangote’s assertion that his refinery can meet local needs, the marketers urge the government to delay any import ban.

“I don’t think the government should be thinking in the direction of banning the importation of petroleum products. If they are thinking in that direction, we would like to advise them that this is not the right time to do that because some of the refineries are still under construction. It’s the only Dangote refinery that we can boast of for now in Nigeria.

“The important thing is that the government has to be sure of fuel security in the country. Before we can ban fuel imports, we must make sure that we have more refineries around that can take care of our daily consumption. With what is on the ground, I don’t think the government would like to do that,” Fashola stated.

“We need to sustain what we are enjoying now in the oil and gas sector. Affordability and affordability is very key,” he noted.

Fashola acknowledged the claims of the Dangote refinery, Nigerian National Petroleum Company Limited, and other modular refineries, but emphasized that their refining capacity must be fully tested before considering any ban on fuel imports.

“We must put all these to the test, and not just speculate. In my own candid opinion, I think that by the time we have like two or three refineries with reasonable capacity, we can be sure of banning fuel imports. Don’t forget that Dangote has its own commitment outside this country. It has its customers; it has a commitment that it has to meet.

“So, all those things have to be considered before we say we are good to go, locally. I don’t know much about the refining capacity of NNPC refineries for now, but all we know is that they are working and they are pushing to the market. But with what is on the ground, we have to be sure that we have enough locally before we make a move to ban the importation of petroleum products totally,” he explained.

Asked to state what could be the consequence should the government ban fuel imports now, Fashola replied, “I foresee price increase, and if care is not taken, maybe scarcity. We should not rule out the intervention of these imported petroleum products, too. Surely, there will be market reactions if you stop imports suddenly because the imported fuels are taking care of a certain quantity of our demands and our daily needs. So, it should not be suddenly done.”

PETROAN also cautioned the Federal Government against a fuel importation ban, citing concerns that it could lead to shortages or price hikes due to Nigeria’s still-developing refining capacity. The association welcomed President Tinubu’s local goods policy but stressed the need for careful implementation to avoid exacerbating inflation and energy security issues.

“Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products. We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the well-being of Nigerians,” Gillis-Harry said.

PETROAN warned that banning imports could lead to shortages and inflation if local production can’t meet demand. The association urged the government to balance its objectives with caution to avoid economic disruptions. Meanwhile, the Dangote refinery and other local refineries have called for a halt to fuel import licenses, arguing they can meet local demand. Dangote has even taken legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Authority for issuing importation licenses despite local refining capacity. This comes after President Tinubu’s announcement to bar government agencies from procuring foreign goods when local alternatives exist.