A coalition of Nigerian refinery owners, under the banner of the Crude Oil Refineries-owners Association of Nigeria (CORAN), has called for an immediate end to the country’s reliance on fuel importation. The group argues that Nigeria should transition from importing fuel to becoming an exporter, criticising the ongoing protection of depot owners’ businesses......See Full Story>>.....See Full Story>>
In a recent interview, CORAN’s Publicity Secretary, Eche Idoko, expressed that Nigeria’s current focus should not be on safeguarding the interests of fuel depot owners, who he believes add little value to the supply chain. “For the products that we have in-country capacity, the Federal Government should stop issuing import licenses on them, like diesel and petrol,” Idoko said.
Idoko also questioned the economic benefits provided by depot owners, who he accused of inflating fuel prices. He pointed out that independent marketers are forced to buy petrol at nearly ₦800 per liter due to the added costs imposed by depot owners. He stated that depot operations should only be a temporary solution until Nigeria’s refining capacity increases.
Moreover, Idoko criticised depot owners for their refusal to invest in or partner with local refineries. He suggested that these businesses could diversify by investing in refineries or forming partnerships for bulk storage, which would ultimately help transition Nigeria from being an import-dependent nation to an export hub.
Idoko’s comments come amid concerns expressed by the Depots and Petroleum Marketers Association of Nigeria (DAPPMAN) that the Dangote Petroleum Refinery may monopolise fuel supply in the country. DAPPMAN’s National Chairman, Abdulkabir Adisa, recently accused the Dangote Group of attempting to dominate the petroleum sector, similar to its control over the sugar industry.
Earlier, Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, also raised concerns about monopolisation. He alleged that the Dangote refinery had pressured him to halt the issuance of import licenses for diesel, forcing traders to buy solely from Dangote.
The debate over fuel importation has intensified as former President Olusegun Obasanjo recently warned that those profiting from the lucrative fuel importation business might seek to undermine the success of the Dangote refinery.
Meanwhile, President Bola Tinubu revealed that Nigeria currently spends ₦2 trillion monthly on fuel imports. Despite this, some experts argue that Nigeria should not completely halt fuel imports until the country has at least four fully operational refineries.
As the discussion continues, CORAN has challenged depot owners to a public debate to discuss the future of Nigeria’s fuel industry, emphasising the need for economic reforms that prioritise national growth over individual business interests.