Refiners Take a Stand Against Petrol Import Licences Issued to IPMAN and PETROAN by FG

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has voiced strong opposition to the Nigerian Federal Government's plan to issue import licenses to petroleum traders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).

This move has sparked a heated debate over the potential impact on Nigeria's domestic refining industry and the quality of petroleum products available in the market.

CORAN's primary concern is that granting these licenses could lead to an influx of substandard petroleum products into the Nigerian market.

They argue that this would undermine local refiners who are capable of meeting the country's fuel needs.

According to Eche Idoko, the Publicity Secretary of CORAN, "We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products that we have sufficiency in."

The controversy highlights a broader issue within Nigeria's petroleum sector: the balance between encouraging local production and managing imports. The Petroleum Industry Act (PIA) is cited by CORAN as supporting "backward integration," which they interpret as a mandate to prioritize domestic refining over imports when there is sufficient in-country capacity.

CORAN suggests that instead of issuing import licenses, the government should focus on protecting and developing the nascent refining industry in Nigeria.

They emphasize the importance of building domestic refining capacity, arguing that "there is nothing that can be better than building domestic refining capacity." This approach, they believe, will not only ensure product quality but also contribute to the country's economic recovery.