MARKETERS have argued that Nigeria cannot ban fuel importation now, saying the country’s refining capacity is still low.
The marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlet Owners Association of Nigeria said any ban on fuel importation now could trigger scarcity and a hike in fuel prices.
This newspaper reports that under President Bola Tinubu’s ‘Nigeria First Policy’, the President directed on Monday that “no procurement of foreign goods or services already available locally shall proceed without justification and a written waiver from the Bureau of Public Procurement.”
Amid claims that the country’s refining capacity had increased and the comments by the founder of the Dangote Petroleum Refinery, Aliko Dangote, that the facility can meet local fuel needs, there are speculations that the ban might be extended to petroleum products.
However, speaking with our correspondent, the National Vice President of IPMAN, Hammed Fashola, maintained that the Federal Government should not think of banning fuel imports this time.
“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.
According to him, some other products are essential to people’s lives that they have to spare in the importation ban policy, especially if local production is low.
He maintained that the fuel security being enjoyed now should be sustained by the government.
“We need to sustain what we are enjoying now in the oil and gas sector. Affordability and affordability is very key,” he noted.
Reminded that the Dangote refinery has boasted that it can satisfy local needs, while the Nigerian National Petroleum Company Limited and other modular refineries are also producing, Fashola said the capacity of these refineries must be put to the test first.
“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.”
Similarly, the Petroleum Products Retail Outlet Owners Association of Nigeria also warned the Federal Government against banning fuel importation into Nigeria.
PETROAN said banning fuel importation could lead to shortages or profiteering, saying the nation’s refining capacity is still low.
PETROAN’s National President, Billy Gillis-Harry, said the association cautiously welcomed Tinubu’s decision to ban the importation of foreign goods produced locally, but it emphasised the need for careful implementation to avoid unintended consequences.
The association urged the government to ensure that the policy does not lead to shortages or price increases, “particularly in the petroleum sector, where local refining capacity is still being developed.”
PETROAN expressed concerns that the policy could worsen Nigerian inflation, emphasising the need for energy security.
“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.
The association called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.
The President of PETROAN applauded President Bola Tinubu for the bold step, warning, however, of potential pitfalls.