Local refinery owners, including the Dangote Petroleum Refinery, assert they can eliminate Nigeria’s dependency on imported refined petroleum products within 18 months if the Federal Government collaborates with their plans. Speaking on behalf of the Crude Oil Refiners Association of Nigeria (CORAN), Publicity Secretary Eche Idoko highlighted the readiness of various refineries, including the 650,000-barrel-capacity Dangote Petroleum Refinery, to meet the nation’s fuel needs.
Idoko emphasized that addressing the high cost of fuel is crucial for tackling inflation, urging the government to involve local refiners in its economic strategies. He argued that by supporting local refineries, Nigeria could significantly reduce fuel importation and stabilize the pump price of petroleum products.
“We can stop the importation of petroleum products completely within 18 months if the government works with our programs and plans,” Idoko stated, noting that several refineries are nearing completion and could soon satisfy domestic fuel demand.
A significant obstacle to this goal, Idoko mentioned, is crude theft, which hampers the upstream oil sector. He suggested that the establishment of local refineries would mitigate this issue by reducing the need for long-distance pipeline transportation, thereby curbing theft.
Idoko also proposed that international oil companies (IOCs) should sell crude oil to local refineries at rates lower than the international price, and in naira rather than dollars, to ease production costs and strengthen the local currency. This shift would also involve IOCs selling directly to local refiners rather than through European trading agents.
Contrarily, the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, expressed concerns about over-relying on the Dangote refinery, warning that it could lead to a monopoly. He revealed that Dangote had requested the regulator to halt issuing import licenses to other marketers to position itself as the sole fuel supplier.
In response, Aliko Dangote, President of Dangote Group, refuted allegations of seeking a monopoly, pointing out the ongoing renovations of government-owned refineries by the Nigerian National Petroleum Company Limited. Amidst these debates, Dangote announced plans to start petrol supply by mid-August but hinted at potential exports if the crude supply crisis persists.
The call for government support of local refineries has been echoed by many Nigerians, who hope this move will reduce fuel prices and stabilize the economy.