Some experts in Nigeria’s oil and gas sector have raised concerns about
the country’s readiness to halt fuel importation, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to resist pressures to limit import licenses.
This debate follows allegations by NMDPRA Chief Executive Farouk Ahmed that the Dangote refinery requested him to cease issuing import licenses.
Ahmed claimed he rejected this request to prevent a monopoly and ensure energy security.
This stance has sparked public outcry and calls for Ahmed’s removal.
Energy consultant Henry Adigun criticized the NMDPRA for publicly discussing the Dangote refinery’s request, suggesting such matters should remain confidential.
Adigun argued that Nigeria should not stop fuel imports until there are multiple operational refineries, stressing that relying on a single entity for energy security is unwise.
Adigun also highlighted the importance of protecting the rights of depot owners to import fuel, as stipulated by the Petroleum Industry Act (PIA).
He pointed out that while the Dangote refinery could impact fuel prices, it is unlikely to drastically lower them due to the high cost of crude oil and production.
Dr. Taiwo Ogunleye, another industry expert, emphasized that petroleum remains crucial to the global economy and modern energy systems.
He supported the PIA’s provisions, which empower the NMDPRA to encourage local refining investment and allocate import licenses based on specific criteria.
In contrast, Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, urged the government to end fuel imports swiftly.
Idoko believes local refiners could meet domestic demand if the government provides crude oil to them in local currency, fulfilling its promises.
