The Crude Oil Refinery Owners Association of Nigeria has warned the Federal Government to be cautious in granting import licences to petroleum traders for the importation of refined products.
CORAN’s comment came amid the controversy between the Dangote Petroleum Refinery and oil marketers.
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria had said they would import Premium Motor Spirit (petrol) and sell the product cheaper than the N990/litre offered by the Dangote refinery, saying the association was awaiting the approval of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Independent Petroleum Marketers Association of Nigeria also said it was processing its import licence with the NMDPRA, saying it might be cheaper to import than to buy from Dangote refinery.
However, in an interview with our correspondent, the Publicity Secretary of CORAN, Eche Idoko, expressed concerns that the marketers were still bent on importing what he called substandard petrol into the country.
According to him, some international traders were bent on using the Nigerian market as a dumping ground for cheap petroleum products rejected in Europe.
“We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products that we have sufficiency in. Even if they are issuing, it should be based on the shortfall, not to say you are importing so that you can compete.
“We are not telling NMDPRA how to do its job. We are simply telling NMDPRA to protect the Nigerian domestic refining market. And whatever they have to do that they think is best, they should do it. But I do not think giving licences to European traders is good enough to defend the Nigerian market.
“The continuous issuance of import licences will only kill our industry. The government must try and protect the nascent refining industry that is emerging in Nigeria, and they can do that by desisting from giving import licences to these conglomerates that are just interested in making Nigeria a market for their substandard products,“ the CORAN spokesman stated.
Reminded that the Petroleum Industry Act does not stop the NMDPRA from issuing import licences, Idoko replied that the same PIA provided for what he termed backward integration.
“PIA says any product we have in-country refining capacity in, they should stop issuing licences,“ he said.
He noted that CORAN is deeply concerned that quite a number of international traders still have the licence to import fuel.
