Oil marketers in Nigeria have raised alarm over a potential spike in petrol prices to ₦1,500 per litre, should the Federal Government implement a ban on fuel importation as part of President Bola Tinubu’s emerging ‘Nigeria First Policy’. The policy urges government agencies to prioritize locally produced goods over imports.
According to the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the local refiners, particularly the Dangote Petroleum Refinery, could engage in price exploitation if importation is scrapped without robust market competition.
“Importation has been long there, and it has been sustaining us. Now that we have the Dangote refinery that has been producing petroleum products and the NNPC that has been struggling to see whether they can produce one keg of petrol for this country, it is also pertinent to allow importation to check the domestic prices of fuel in this country,” Ukadike stated.
He expressed strong opposition to any outright ban, noting that importers were essential during the period when Nigeria lacked functioning refineries. He also cautioned that banning importation outright would allow dominant players like Dangote Refinery to control pricing unchecked:
“We won’t want refiners to start extorting Nigerians because there are no more imports. Sometimes, import helps to regulate the prices of petroleum products. You will also agree with me that the modular refineries producing diesel are not selling it cheaper than the imported one. I will appeal to Mr President to allow the importation of petroleum products.”
The warning comes amid speculation that President Bola Tinubu may move to ban fuel importation under his new ‘Nigeria First Policy’, which mandates government agencies to stop importing products that can be produced locally. The policy is seen as an effort to stimulate local manufacturing and refining capacity.
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However, Ukadike argued that importers remain vital for market balance and that any ban would distort pricing mechanisms.
“It is the factor of price that will ban importation. If the prices of local fuel are cheap, the marketers will buy, and importers will ban themselves from importing. Allow the importers to look at the indices of the market and see when local refineries are becoming exploitative. Once you ban them from importing, Dangote will raise its PMS to ₦1,500, and this is not good for Nigerians.”
He added that fuel importers will naturally phase out their operations once local production becomes more cost-effective, and not by decree:
“If the prices of local fuel are cheap, the marketers will buy, and importers will ban themselves from importing.”
Ukadike also called on the government to focus on supporting local refiners rather than shutting out competition:
“We, the independent marketers, don’t encourage the banning of petroleum products imports. Let the government give aid and support to our local refineries and manufacturers. Look at the taxes, look at the bank charges to ensure their prices are good for export, not only for internal consumption. The government can give a mandate to local refineries to export petroleum products after meeting domestic consumption.”
Meanwhile, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) added to the conversation, noting that while it would not speculate on specific prices, a ban on fuel imports would undoubtedly lead to a price surge.
In contrast, officials of the Dangote Petroleum Refinery rejected the claims, suggesting that some marketers are using price scare tactics to justify their continued importation of what they called “substandard” fuel. They emphasized that the refinery is equipped to meet Nigeria’s domestic fuel needs and even export to neighbouring countries.
The unfolding debate occurs against the backdrop of ongoing legal tensions, as the Dangote refinery has taken the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other industry players to court. Stakeholders suggest the refinery’s capacity and regulatory reach are creating unease among importers, depot owners, and marketers.
Currently, Nigeria imports around 14.7 million litres of fuel daily, but with the 650,000 barrels-per-day Dangote refinery and other modular refineries ramping up, speculation grows that the country may soon attempt a full transition to local refining.