Operators of local refineries in Nigeria have raised concerns over the Federal Government’s recent stance on fuel importation. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the government would continue to import fuel, a move perceived as a blow to local refineries.
The Crude Oil Refiners Association of Nigeria, representing local refinery operators, expressed their dismay following an interview with Ahmed Farouk, CEO of NMDPRA, who described locally produced diesel as ‘inferior’ to imported diesel. This statement has sparked outrage among local operators who believe the government is siding against them.
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On Friday, the NMDPRA declared that the importation of refined petroleum products would persist alongside production from the Dangote Petroleum Refinery to prevent monopoly and ensure energy security. The government cautioned against relying solely on the Dangote Refinery, emphasizing the need for competition.
Farouk, during an interview in Port Harcourt, stated that local refineries produced inferior diesel compared to imports, causing further unrest among local refiners. Reacting through their umbrella body, the Crude Oil Refiners Association of Nigeria, the local refiners accused the government of taking sides against them.
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“We are worried that the Chief Executive of NMDPRA would make such categorical statements, suggesting strongly that he is taking sides. So much so that he even ridicules his own agency’s processes when he refers to the petroleum products produced by refineries that his agency closely regulates as inferior, thereby undermining the country’s health and safety procedures,” said Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria.
Farouk had revealed that the Dangote Refinery requested the regulator to stop issuing import licenses to other marketers, aiming to be the sole fuel supplier in Nigeria. “We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop the importation of all petroleum products, especially AGO, and direct all marketers to the refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of monopoly,” Farouk emphasized.
Local refiners accused detractors of discrediting their efforts and highlighted misinformation campaigns against indigenous refineries. Idoko also pointed out contradictions within NMDPRA’s statements regarding the completion and licensing of the Dangote Refinery.
“This struggle is not about an individual or a particular company. It is about the country and its survival. It is about the Nigerian citizenry. At this rate, we are truly worried about the ability of NMDPRA to provide a level playing field for all stakeholders going forward,” the indigenous refiners stated.
Farouk disclosed that the Dangote Refinery, which has been selling diesel and aviation fuel in Nigeria for months, was still at the pre-commissioning stage and had not been licensed.
The Major Energy Marketers Association of Nigeria (MOMAN) reacted to the NMDPRA comments, with Executive Secretary Clement Isong describing them as clear and direct. “We need this open and direct communication from time to time from the regulator to help the public dissect the issues that so seriously concern them,” he stated.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also criticized the Nigerian National Petroleum Company Limited (NNPCL) and International Oil Companies (IOCs) for allegedly frustrating indigenous refiners. National Public Relations Officer Ukadike Chinedu said, “You export the product, while your refineries are being starved. That’s not a good thing.”
Former Group Managing Directors of the NNPC expressed concern over the limited public information on NNPCL’s operations since its transition to a private commercial entity. They met with the current Group CEO, Mele Kyari, in Abuja, commending the company’s achievements but urging for more transparency.
The Dangote Petroleum Refinery aims to reach a refining output of 550,000 barrels per day this year, according to Aliko Dangote, President of the Dangote Group. However, he noted that the refinery would need to increase crude imports due to insufficient domestic supplies.
