Energy group urges Tinubu to reconsider petrol import permits
Energy Policy Group Advises Tinubu to Reconsider Fuel Import Permits
ABUJA, Nigeria — The Energy Transparency and Market Justice Initiative (ETMJI) has called on President Bola Ahmed Tinubu to reassess the economic implications of new permits allowing marketers to import petrol into Nigeria. The group warns that this decision could jeopardize the nation’s efforts to enhance domestic refining capabilities and stabilize the economy.
In a statement released Sunday, ETMJI expressed concerns over approvals granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The group cautioned that these measures could have negative consequences if not monitored closely.
Dr. Salako Kareem, president of ETMJI, emphasized that Nigeria is at a pivotal stage in its energy transition. The choices made now will significantly influence the country’s long-standing reliance on imported refined petroleum products. Kareem remarked that while the need for a stable fuel supply is crucial, expanding import licenses might undermine necessary policies to boost local production and ensure long-term sector stability.
“Our respectful appeal to President Tinubu is that decisions regarding petrol importation must be evaluated in light of their potential long-term economic effects,” Kareem said. He highlighted the paradox of Nigeria being a major crude oil producer while still heavily depending on imported refined products. Kareem cautioned that increased importation could impede progress toward developing domestic refining capacity.
He raised concerns that ramping up petrol imports could exert additional pressure on Nigeria’s foreign exchange reserves at a critical time when the government is engaged in rigorous economic reforms aimed at stabilizing the naira and promoting fiscal discipline.
“For years, the country has experienced significant foreign exchange losses due to petroleum imports that could ideally be refined locally,” Kareem stated. He noted that a rise in import volumes would disproportionately increase demand for foreign currency, potentially straining the naira and undermining ongoing economic stabilization efforts.
ETMJI also warned that excessive reliance on imported petrol could lead to product dumping and the introduction of substandard fuel in the Nigerian market. Kareem cited historical quality control issues in the downstream sector, particularly during periods of high imports, where inferior products have often entered the market.
“When imports dominate the supply chain, the risk of inferior petroleum products being dumped increases,” he said. “This not only complicates regulation but also exposes consumers to fuels that can harm vehicles and industrial machinery, resulting in hidden economic costs.”
Kareem advocated for the promotion of domestic refining and stronger local supply chains to enhance product traceability and market transparency. He clarified that ETMJI’s intervention was not aimed at criticizing the NMDPRA but recognized the complexities regulators face in preventing supply disruptions in a volatile energy market.
He urged the federal government to ensure that short-term supply strategies do not compromise long-term national interests in the petroleum sector. “We understand the regulator’s duty to prevent fuel shortages, which is critically important,” Kareem noted, while stressing the need for policy coherence.
The group believes that Nigeria has a unique opportunity to revamp its downstream petroleum industry, thereby strengthening domestic production, protecting foreign exchange reserves, and fostering long-term industrial growth. Kareem urged President Tinubu to ensure the regulatory framework aligns with this strategic vision.
“Our appeal is for policy alignment. If Nigeria genuinely aims to build a resilient energy economy, every major decision in the downstream sector must support reducing import dependency, enhancing domestic production, and safeguarding the nation’s economic stability,” Kareem concluded.
ETMJI emphasized that effective policy coordination between regulators and the presidency is essential to avoid repeating past costly import cycles that drained public resources and weakened the economy.
