An energy policy group has urged President Bola Ahmed Tinubu to review newly issued permits for petrol importation, cautioning that expanding fuel imports could derail Nigeria’s efforts to boost domestic refining and stabilise its economy.
The Energy Transparency and Market Justice Initiative (ETMJI) issued the warning following approvals granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). In a statement, the group’s president, Dr. Salako Kareem, said that while ensuring adequate fuel supply is critical, increasing import permissions at this juncture risks weakening long-term policy goals.
“Nigeria has spent decades overcoming the paradox of being a major crude oil producer while relying on imported refined products,” Kareem stated. “Any policy action that reopens the floodgates of importation may slow progress toward strengthening domestic refining capacity.”
He highlighted several economic risks. Rising petrol imports would increase demand for foreign currency, potentially straining the naira and undermining the government’s broader economic stabilisation programme. For years, Nigeria has lost substantial foreign exchange to fuel imports that could be processed locally. A resurgence in imports could exacerbate this drain on reserves at a sensitive time for fiscal reforms.
The group also warned of recurring quality control issues. Historically, widespread importation has led to product dumping and the entry of substandard fuel into the market, as imported products often pass through multiple intermediaries. Such practices impose hidden costs through vehicle damage and industrial inefficiencies.
Kareem stressed that the intervention was not a criticism of the NMDPRA but a plea for policy coherence. “We recognise the regulator’s duty to prevent shortages,” he said. “However, the country must avoid sending signals that discourage investment in local refining or create uncertainty about its commitment to energy self-sufficiency.”
He described the current moment as a rare opportunity to restructure Nigeria’s downstream sector around domestic production, forex preservation, and industrial capacity building. The group called for careful coordination between regulators and the presidency to ensure short-term supply measures do not compromise long-term national objectives.
The appeal underscores a pivotal policy debate: balancing immediate fuel supply security with the strategic imperative to reduce import dependence and build a resilient domestic energy economy.
