Fuel importers in Nigeria may soon be forced out of business due to the rise of local refining, according to the Crude Oil Refinery Owners Association of Nigeria (CORAN).
Speaking to Sunday PUNCH, CORAN’s Publicity Secretary, Eche Idoko, dismissed claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that the naira-for-crude deal was harmful to the economy. Idoko argued that depot owners, who rely heavily on fuel importation, fear losing relevance in a refining-dominated market.
“A man who has drums that store water in order to make money would not want the pipes to run. That’s what tank farm owners do,” Idoko said, likening the depot operators’ resistance to the local refining push to selfish business protection.
Idoko criticized importers for allegedly attempting to derail the naira-for-crude deal, which allowed refineries like Dangote’s to purchase crude in naira. He noted that the initiative significantly slashed petrol prices from N1,100 to N860 per litre.
“The price of PMS continued to rise because these middlemen are the elements that want to see that local refining is not sustained,” he said. “They have no investment in the business. They just come in as agents, make money, and then cash out.”
Despite DAPPMAN’s appeal to cancel the deal, citing risks to foreign exchange stability and investor confidence, the Federal Government has ordered the continuation of the policy indefinitely.
DAPPMAN Executive Secretary, Olufemi Adewole, warned that, “The global oil market operates in US dollars due to its stability. Continuing the policy could alienate trade partners and investors.”
Still, CORAN maintains that refining in Nigeria is irreversible. “As long as they keep to that position, at some point, they will all go out of business. Because refining in Nigeria has come to stay,” Idoko insisted.
