The Crude Oil Refinery House owners Affiliation of Nigeria has warned the Federal Authorities to be cautious in granting import licences to petroleum merchants for the importation of refined merchandise.
CORAN’s remark got here amid the controversy between the Dangote Petroleum Refinery and oil entrepreneurs.
Members of the Petroleum Merchandise Retail Outlet House owners Affiliation of Nigeria had mentioned they’d import Premium Motor Spirit (petrol) and promote the product cheaper than the N990/litre supplied by the Dangote refinery, saying the affiliation was awaiting the approval of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Unbiased Petroleum Entrepreneurs Affiliation of Nigeria additionally mentioned it was processing its import licence with the NMDPRA, saying it could be cheaper to import than to purchase from Dangote refinery.
Nevertheless, in an interview with our correspondent, the Publicity Secretary of CORAN, Eche Idoko, expressed issues that the entrepreneurs have been nonetheless bent on importing what he known as substandard petrol into the nation.
In accordance with him, some worldwide merchants have been bent on utilizing the Nigerian market as a dumping floor for affordable petroleum merchandise rejected in Europe.
“We’re saying categorically that the NMDPRA ought to cease issuing import licences to people who find themselves bringing in merchandise that we’ve got sufficiency in. Even when they’re issuing, it must be based mostly on the shortfall, to not say you’re importing with the intention to compete.
“We aren’t telling NMDPRA tips on how to do its job. We’re merely telling NMDPRA to guard the Nigerian home refining market. And no matter they’ve to try this they suppose is greatest, they need to do it. However I don’t suppose giving licences to European merchants is nice sufficient to defend the Nigerian market.
“The continual issuance of import licences will solely kill our business. The federal government should try to shield the nascent refining business that’s rising in Nigeria, they usually can do this by desisting from giving import licences to those conglomerates which can be simply serious about making Nigeria a marketplace for their substandard merchandise,“ the CORAN spokesman acknowledged.
Reminded that the Petroleum Business Act doesn’t cease the NMDPRA from issuing import licences, Idoko replied that the identical PIA offered for what he termed backward integration.
“PIA says any product we’ve got in-country refining capability in, they need to cease issuing licences,“ he mentioned.
He famous that CORAN is deeply involved that fairly plenty of worldwide merchants nonetheless have the licence to import gasoline.
This, he mentioned, is detrimental to the event of the refining section of the petroleum sector, saying it can negatively impression the financial restoration and recreation plan of the nation in the end.
“There may be nothing that may be higher than constructing home refining capability. The Nigerian authorities will not be towards native refining. Folks must be speaking about constructing refineries and never importing merchandise,” he defined.
Idoko mentioned worldwide merchants are utilizing native merchants as an instrument to combat their commerce conflict as a result of they’re within the Nigerian market, however don’t wish to spend money on the Nigerian market.
“We aren’t saying they can not promote in Nigeria. What we’re saying is that if you wish to promote, come and construct your refinery in Nigeria. Create worth in Nigeria. Don’t come and dump your substandard merchandise right here as a result of you may’t promote them in Europe once more.
“You’re saying you’re bringing cheaper merchandise, how low cost is that this product as a matter of truth? You might be bringing a lesser product and promoting to us at N900 and also you say it’s low cost. I’m not holding a short for Dangote. As I hold saying, we’ve got greater than Dangote as a refinery.”
“By subsequent yr, we may have three extra refineries producing PMS in Nigeria. Why are we not telling these guys to come back and arrange their refineries or purchase into any of the refineries in Nigeria? Why are they not shopping for into different refineries? NNPC has three refineries which can be up for lease. Why are they not coming to take them to allow them to provide?“ he emphasised.
Idoko mentioned that stopping gasoline importation is for the nice of the nation.
“What we’re saying is for the nice of the individuals. We don’t need individuals to make use of us as a market with out investing within the economic system of Nigeria. We’d like overseas direct funding to develop the Nigerian economic system.
“If the federal government needs to assist Nigerians who’ve taken the bull by the horns to take a position their hard-earned sources, then the federal government should shield them. World over, governments shield their native industries. Opening up the downstream to importation will proceed to have an effect on us. The one resolution to vitality value is native refining,“ he acknowledged.