Petroleum marketers have cautioned the Federal Government against implementing a hasty ban on the importation of petroleum products, warning that such a move could backfire due to Nigeria’s insufficient domestic refining capacity. The warning comes amid President Bola Tinubu’s recently announced Nigeria First Policy, which aims to prioritize local goods and services in public procurement.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) expressed concerns over the proposed fuel import restriction, arguing that the country’s energy security remains heavily reliant on imported products. They warned that an abrupt ban could trigger fuel scarcity, price surges, and economic disruptions.
Hammed Fashola, National Vice President of IPMAN, told journalists that although the Dangote Refinery is a major step forward for domestic production, it alone cannot meet the country’s daily fuel needs, which currently exceed 46 million litres of petrol.
“I don’t think the government should be thinking in the direction of banning fuel imports now,” Fashola stated. “Only the Dangote refinery is operational, while others like the NNPC’s refineries are still undergoing rehabilitation. We must ensure fuel security first before we cut off imports.”
Fashola emphasized that any premature ban would likely disrupt supply chains and could lead to hoarding or profiteering. “We must put these refineries to the test before relying solely on them. Dangote Refinery also has international obligations that could affect domestic availability,” he noted.
He warned that such a policy shift could spark price hikes and create artificial scarcity. “Imported products still fill a critical gap in meeting national demand. A sudden ban without buffer stock or reliable local output will affect market stability,” he added.
Echoing similar sentiments, the President of PETROAN, Billy Gillis-Harry, said while the association supports the spirit of the Nigeria First Policy, a blanket ban on fuel imports would be ill-timed and harmful to consumers.
“Our primary concern is availability and affordability. Nigeria’s refining capacity is still developing, and we must not compromise energy security,” he said. “If local production cannot meet demand, a ban could worsen inflation and trigger economic shocks.”
Gillis-Harry stressed that essential goods, including petroleum products and pharmaceuticals, should be exempted or granted waivers under the new policy until domestic supply becomes stable. He also advised the government to learn from global practices, noting that even the U.S., under its ‘America First’ initiative, uses targeted tariffs rather than outright bans.
Meanwhile, Aliko Dangote’s oil refinery has been pushing the government to ban fuel importation entirely, asserting that it now has the capacity to meet Nigeria’s domestic fuel demand. The refinery, touted as Africa’s largest, even filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority for continuing to issue import licences to marketers.
However, industry stakeholders argue that depending solely on Dangote’s facility is premature. “One refinery, no matter how large, cannot anchor national energy security. Multiple functioning refineries and strategic reserves are required,” a sector analyst told this publication.
President Tinubu’s administration is doubling down on efforts to promote local content and reduce Nigeria’s dependency on foreign goods. During Monday’s Federal Executive Council meeting, Tinubu issued a directive barring Ministries, Departments, and Agencies (MDAs) from procuring foreign goods or services where local alternatives exist — unless they obtain written waivers from the Bureau of Public Procurement.
In a statement released by Special Adviser Sunday Dare, Tinubu emphasized the importance of domestic capacity-building. “We will invest in our people and our industries. Contractors will no longer serve as intermediaries sourcing foreign goods while local factories lie idle,” the President said.
The Nigeria First Policy seeks to overhaul procurement practices, build local capacity, and stimulate industrial growth. But marketers insist that petroleum products should not be treated like other goods due to the sensitive nature of energy supply and its implications for national stability.
Experts recommend a phased approach to reducing fuel imports. They advocate simultaneous investment in modular refineries, NNPC facility upgrades, and strategic partnerships to scale up domestic production.
“Suddenly halting imports will strain a system still reliant on external sources,” said Chika Umeh, an energy economist. “It’s not just about refining capacity. We also need consistent crude supply, quality assurance, and robust logistics.”
While the government’s effort to prioritize local industries is commendable, stakeholders insist that energy security must take precedence. The current reality, they argue, is that local refining is not yet robust enough to shoulder the entire burden of national demand.
A premature ban on petroleum imports, they warn, could undermine public trust, spark inflation, and hamper Nigeria’s economic recovery.