The Crude Oil Refinery Owners Association of Nigeria (CORAN) says fuel importers may soon be out of business if they ignore the shift toward local refining. CORAN’s Publicity Secretary, Eche Idoko, said this after the Federal Government reinstated the naira-for-crude deal despite pushback from major importers.
Depot owners resist naira-for-crude policy
Idoko explained that the opposition mainly comes from depot owners who profit from imported fuel. He likened them to water sellers who fear losing customers when proper pipelines begin to work. According to him, these marketers are unwilling to change their business models, even though local refining is growing.
Naira-for-crude helped reduce fuel prices
He argued that the naira-for-crude policy helped reduce the price of petrol, bringing it down from N1,100 per litre to around N860. He added that without the policy, prices were headed toward N700 per litre and beyond due to international market factors.
Importers fear loss of market share
CORAN said importers do not want local refineries like Dangote’s to succeed, as this threatens their market share. Idoko accused them of importing poor-quality fuel and acting as middlemen without real investments. He warned that they would be forced out of business as more local refineries begin full operations.
Marketers lost N76.5bn in one month
Reports show that due to price cuts from Dangote Refinery, fuel importers lost up to N76.5 billion in March alone. The marketers claimed they were forced to sell at a loss since consumers prefer cheaper fuel.
DAPPMAN opposes naira deal
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) opposed the naira-for-crude policy, arguing that it harms foreign exchange earnings and scares off investors. Its Executive Secretary, Olufemi Adewole, said oil should be sold in dollars, not naira, to align with global market standards.
Federal Government insists on local focus
Despite the complaints, the Federal Government ordered that the naira-for-crude arrangement should continue. The policy allows local refiners to buy crude using naira, helping reduce fuel costs and support local production.
As Nigeria pushes for self-reliance in fuel supply, local refining may eventually replace fuel importation entirely, forcing traditional importers to either adapt or close shop.