Nigeria’s fuel importers may soon be forced out of business as local refining gains momentum, according to the Crude Oil Refinery Owners Association of Nigeria (CORAN).
The association applauded the Federal Government’s decision to reinstate the naira-for-crude policy, which allows domestic refineries to purchase crude oil using naira instead of dollars.
Speaking to NIGPOST, CORAN’s Publicity Secretary, Eche Idoko, criticized the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for opposing the policy.
He argued that fuel importers, who own depots and thrive on bringing in petroleum products from abroad, feel threatened by the rise of local refining which could make their business model obsolete.
Idoko drew a vivid analogy: “A man storing water in drums for sale won’t want the taps turned on. The same way, depot owners fear functioning refineries and pipelines, which could render their storage facilities and import business irrelevant.”
He further emphasized that local refiners had invited importers to rethink their business approach in view of Nigeria’s evolving energy landscape, but most refused to adapt. “They’ve remained stuck in the fuel importation model, but the truth is, refining has come to stay,” he said.
Idoko also warned that some actors in the petroleum industry were still pushing for the continued importation of low-quality fuel, despite its negative implications for consumers and the economy.
He noted that the naira-for-crude arrangement had driven fuel prices down from nearly N1,100 to around N860 per litre when the Dangote refinery began operations with crude purchased in naira.
However, the drastic drop in prices sparked panic among importers, who claimed they were being forced to sell below cost, leading to estimated losses of N2.5 billion daily and over N76 billion monthly during the price slump in March.
DAPPMAN has argued that the naira-for-crude model poses a threat to Nigeria’s forex reserves and could scare off international investors. Its Executive Secretary, Olufemi Adewole, stated that crude oil transactions should remain in US dollars to align with global standards.
But the Federal Government stood its ground, reaffirming support for the naira-based policy. According to Idoko, “Middlemen who benefit from high fuel prices and importation have no real stake in the system.
They connect Nigerian buyers with international sellers, make their profit, and leave. These agents have no real investment and are now trying to sabotage local refining efforts.”
He concluded by praising the FG’s bold move to prioritize domestic refining and urged all stakeholders to support the shift toward energy self-sufficiency.
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