Refinery operators in Nigeria have called on the Federal Government to immediately cease the importation of Premium Motor Spirit (PMS), commonly known as petrol, emphasizing the availability of over 500 million liters of locally refined fuel at the Dangote Petroleum Refinery. This appeal comes amidst growing concerns over the nation’s continued reliance on fuel imports despite the operational readiness of domestic refineries.
The Crude Oil Refineries Association of Nigeria (CORAN) asserts that Nigeria’s local refining capacity is now sufficient to meet national demand for weeks, questioning the rationale behind the government’s ongoing approval of fuel importation. Industry stakeholders argue that continued imports drain the country’s foreign exchange reserves and undermine the economic viability of local refineries.
In a statement issued by CORAN, refinery owners emphasized that locally refined petrol should eliminate the need for importation. “Why won’t marketers or other stakeholders simply source petrol from Dangote when empirical evidence shows that locally refined products are more affordable?” the statement questioned.
It further noted, “MRS, which sources its fuel from Dangote, is selling at a lower price compared to the Nigerian National Petroleum Corporation (NNPC). This highlights the lack of justification for continued petroleum imports, especially given the provisions of the Petroleum Industry Act (PIA) and the need for backward integration.”
The Dangote Refinery, located in the Lekki Free Trade Zone, Lagos, has a production capacity of 650,000 barrels per day, making it the largest single-train refinery in the world. Since its commissioning, the facility has played a crucial role in reducing Nigeria’s dependency on imported petroleum products—a longstanding challenge for Africa’s largest oil producer.
“Dangote has a stock of 500 million liters of PMS, which represents their production over a 10-day period, and it remains largely untapped. Given this surplus, there is no justification for issuing import licenses when we have a ready supply from a domestic refinery,” CORAN stated.
Industry analysts have also weighed in on the debate, stressing the economic advantages of prioritizing local refining. “Every liter of petrol imported into Nigeria exerts pressure on our foreign exchange reserves and raises costs for consumers. Now that domestic refineries like Dangote are operational, continuing to import fuel is economically counterproductive,” said Chinedu Okonkwo, an energy analyst based in Lagos.
As discussions over Nigeria’s fuel importation policies continue, stakeholders are urging the government to prioritize the growth of the local refining sector. They believe that fostering domestic fuel production is the key to achieving long-term energy independence and bolstering the country’s economic stability.
