Marketers Give Reasons Nigeria Should Not Ban Fuel Import Despite Dangote Refinery

• Marketers have sent a note of warning to the Nigerian government on plans to hurriedly ban fuel importation
• The marketers under the aegis of IPMAN and PETROAN say that Dangote Refinery is operational, and other refineries are still under construction
• President Bola Tinubu recently approved the 'Nigeria First Policy', which aims to prioritise local goods and services

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Oil marketers in Nigeria have warned that any move by the federal government to ban the importation of petroleum products could trigger nationwide fuel shortages and price hikes.

The marketers noted that any ban could hurt the fuel market, citing insufficient local refining capacity.

The warning from the marketers comes following President Bola Tinubu’s introduction of a “Nigeria First Policy,”.

The policy directs all government ministries, departments, and agencies to prioritise locally made goods and services.

Under the directive, foreign procurement is now subject to a waiver from the Bureau of Public Procurement if local alternatives exist.

There has been speculation that the policy could extend to petroleum products.

Marketers say no need to ban fuel imports

Marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have cautioned against hasty implementation, Punch reports.

IPMAN National Vice President Hammed Fashola said:

“The government should not be thinking in the direction of banning petroleum imports now.

“Only the Dangote refinery is operational. The others are still under construction. Before any ban, we need more refineries to ensure fuel security.”

Fashola stressed that Nigeria must first meet its daily fuel consumption locally before contemplating a ban.

He said:

“Imported fuels still account for a substantial share of national demand. Banning imports now could lead to scarcity and higher prices."

Although the Dangote refinery has claimed it can meet domestic demand, Fashola warned against relying on projections.

He added:

“Dangote has international commitments. Its output cannot be presumed to be fully available to the Nigerian market.”

Similarly, PETROAN President Billy Gillis-Harry echoed the concerns, urging the government to approach the policy with caution to avoid economic disruption.

Gillis-Harry noted:

“We support promoting local content, but a fuel import ban now could worsen inflation and energy insecurity."

He argued that refining capacity remains too low to support a ban and called for exemptions for essential goods, including petroleum products and pharmaceuticals.

He warned:

“Some products are not yet readily available locally. Banning imports could lead to shortages and price surges.”

Gillis-Harry pointed to international precedents, such as the U.S. “America First” policy, which used tariffs and exemptions rather than outright bans to protect domestic industries.

He said:

“We must apply wisdom and caution."

NIPCO, other oil firms import 103,800mt of petrol

Earlier, Legit.ng reported that about five oil companies have imported 103,800 metric tonnes of petrol in the first week of May.

Ardova, AA RANO, BOVAS Oil, NIPCO, and Alkanes all imported petrol in Lagos and Calabar ports.

The development comes as Dangote Refinery continues to lead in depot pieces at N837 per litre.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng