CSOs Call for Local Refineries, End to Petrol Importation

Segun Adebayo, the coalition’s spokesperson, made the call on Wednesday during a press conference held in Abuja.

Mr Adebayo, flanked by other members of the coalition, said the “continuous importation of petroleum products by marketers despite the operations of the Dangote Refinery is an act of sabotage against the Nigerian economy.”

The group described the situation in the downstream sector as akin to a cabal prioritising profit over the country’s collective prosperity.

“We are concerned by a small but powerful cabal that has prioritised self-interest by enforcing policies that burden our economy, particularly regarding the importation of Premium Motor Spirit (PMS),” Mr Adebayo said.

Concerns

This is the latest in a series of issues that have been unfolding in the downstream sector since the Dangote Refinery came on board.

Over the past few months, the refinery, owned by Aliko Dangote, has been contending with other players in the sector, including the state-owned Nigerian National Petroleum Company Limited (NNPC Ltd) and the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Despite the availability of products from the Dangote Refinery in the market, pricing has been a major source of dispute.

The recent dispute has been between the refinery and members of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), who have expressed a willingness to continue importing instead of purchasing from Dangote Refinery.

A few days ago, Dangote Refinery accused marketers of importing substandard products into the market, claiming its prices are globally competitive.

The company’s Group Chief Branding and Communications Officer, Anthony Chiejina, stated that an international trading company recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher-quality production.

PETROAN has pushed back, accusing Dangote Refinery of seeking to monopolise the market.

Across the country, petrol sells for over N1,000 per litre, which is believed to be contributing to inflationary pressure.

Pleas

At the briefing, Mr Adebayo said the federal government must protect local refineries and the workers in the sector, adding that “PMS importation not only restricts job creation but also diminishes the growth potential of industries allied with refining.”

He called on President Tinubu to act swiftly so that other investors may not be discouraged or driven out from investing in the oil downstream sector.

“Investors such as Aliko Dangote have taken bold steps to establish local refineries like the Dangote Refinery, which holds promise for achieving fuel independence. Yet, this cabal has actively sabotaged such initiatives, blocking pathways for local investors and discouraging economic independence in the refining sector.

“We trust President Tinubu’s administration to act decisively, safeguarding Nigeria’s economy by holding this cabal accountable and encouraging local refining through policies that prioritise the Naira,” he said.