A civil society organisation, Energy Transparency and Market Justice Initiative (ETMJI), has cautioned that continued approvals for petrol importation could weaken Nigeria’s efforts to strengthen its domestic refining capacity.
In a statement issued in Abuja, the group warned that permits granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) might produce unintended economic consequences if not carefully managed.
President of the organisation, Salako Kareem, said Nigeria is currently at a critical stage in its energy development, noting that policy decisions taken now will determine whether the country can finally reduce its long-standing dependence on imported refined petroleum products.
Kareem acknowledged the responsibility of regulators to maintain adequate fuel supply but stressed that increasing import approvals at this point could undermine efforts to encourage investment in local refining and strengthen the nation’s petroleum sector.
He appealed to Bola Ahmed Tinubu to carefully consider the long-term economic implications of policies related to petrol importation.
According to him, Nigeria has struggled for decades with the contradiction of being a major crude oil producer while still relying heavily on imported refined petroleum products.
He warned that policies that significantly expand imports could slow the progress being made toward building stronger domestic refining capacity.
Kareem also noted that higher petrol imports could increase pressure on Nigeria’s foreign exchange reserves, particularly as the government pursues economic reforms aimed at stabilising the national currency and improving fiscal discipline.
He explained that large-scale importation of petroleum products historically drains significant foreign exchange resources that could otherwise be conserved if refining is done locally.
The group further warned that excessive reliance on imported petrol may open the door to the dumping of substandard fuel into the Nigerian market.
According to Kareem, the downstream petroleum sector has previously faced quality control challenges whenever importation becomes widespread, largely because imported fuel often passes through several intermediaries before reaching domestic depots.
He said such situations could expose consumers to inferior fuel products capable of damaging vehicles, affecting industrial equipment, and creating hidden economic costs for the country.
Kareem added that strengthening domestic refining and local supply chains would improve product monitoring, enhance transparency, and ensure better quality control within Nigeria’s downstream petroleum market.
However, he clarified that the group’s position should not be seen as criticism of the regulator, noting that agencies like the NMDPRA often face complex decisions in maintaining fuel supply in a volatile global energy environment.
He emphasised that while ensuring steady fuel supply remains important, short-term solutions should not undermine Nigeria’s long-term goal of building a sustainable and self-reliant petroleum industry.
