The subtle war of interests between domestic refiners of petroleum products and their counterparts who import same is normal in a liberalised economy like ours. The letters and spirit of the Petroleum Industry Act, PIA, 2021 intend that both should exist side by side, and this has ensured adequate, reliable and sustainable petroleum products availability, though the prices remain outrageous, compared to the period before full withdrawal of subsidies.
The domestic refiners under the umbrella of Crude Oil Refiners Association of Nigeria, CORAN, recently started lobbying the National Assembly through the Senate Committee on Downstream Petroleum Sector, to ensure the imposition of a 25 per cent tariff on imported products to protect the investments of their members.
CORAN is made up of about 20 members, mostly modular refinery owners. These include Waltersmith (Ibigwe/Owerri), Aradel Holdings (Onne), OPAC (Ikot Abasi), Edo Refinery, Dupont Midstream and others. This advocacy, if granted, will also greatly benefit our flagship, global giant, Dangote Refinery.
The Association argued that upstart domestic refiners need to be protected from “dumping” of cheap and sometimes inferior products in the market just to undermine their members. They pointed out the need to protect billions of dollars investments, arguing that their call for 25 per cent tariffs on imported products is in our overall national economic interest. It is also in line with President Bola Tinubu’s “Nigeria First” policy, which is strongly in support of local manufacturing ahead of importation.
Back in May 2025 when the Nigeria First policy was announced by the Minister of Information and National Orientation, Mohammed Idris, the Petroleum Products Retail Outlet Owners Association of Nigeria, PETROAN, had opposed outright ban on importation of petroleum products. They pointed out that many domestic refiners are new in their trade and should be given time to master their art, adding that a ban could lead to epileptic supply.
Our position on this matter is that the interest of the consumers must be paramount in government’s decision making. We want the current trend of unfettered supply and product availability to continue, while efforts at ensuring the steady lowering of prices should be prioritised. This should be the primary objective of Nigeria First.
We also support efforts to protect domestic refiners. If a measure of tariff imposition will give them an edge, then let it be done, but with caution. They are creating value and employment. Let us emulate President Donald Trump of America’s use of tariffs to lure offshore American manufacturers and foreign investors to build their plants in America to avoid tariffs.
This is the only way we can achieve our national objective of making Nigeria the regional reference point in all aspects of the petroleum economy.
We must prioritise the protection of domestic refiners.
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