Local Refiners Criticize NMDPRA Over Support for Imported Fuel

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Local refinery operators have expressed strong discontent with the recent announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that the Federal Government will continue to import refined petroleum products. The operators, represented by the Crude Oil Refiners Association of Nigeria (CORAN), argue that this decision indicates a bias against local refineries.

Their concern was heightened following remarks made by Ahmed Farouk, the Chief Executive Officer of NMDPRA. In a widely circulated interview, Farouk reportedly labeled locally produced diesel as "inferior" compared to imported products. This comment has sparked considerable unease among local refiners.

Further complicating matters, it was announced on Friday that the Federal Government, through the NMDPRA, will continue to facilitate the importation of refined petroleum products while also supporting the operations of the Dangote Petroleum Refinery. The government’s move aims to prevent a monopoly and maintain energy security, but has been met with criticism from local refining entities.

Farouk disclosed during an interview in Port Harcourt that the Dangote Refinery had requested the regulator to halt the issuance of import licenses to other marketers, which would make it the sole supplier of refined products in Nigeria. He warned that relying heavily on one refinery, particularly Dangote's, could undermine market competition and energy security.

The Crude Oil Refiners Association of Nigeria, through its Publicity Secretary Eche Idoko, voiced strong objections to Farouk’s comments. Idoko accused the NMDPRA CEO of undermining local refineries and disregarding their regulatory standards. “We are concerned that the Chief Executive of NMDPRA is taking sides and ridiculing his own agency’s processes,” Idoko said. “This undermines the health and safety procedures of the industry and has significant implications for energy security in Nigeria.”

Idoko also criticized Farouk’s apparent contradictions regarding the status of the Dangote Refinery. Farouk had previously claimed that the refinery was not fully operational and lacked a license, despite earlier NMDPRA confirmations of its near-completion.

The Crude Oil Refiners Association further accused the NMDPRA of discrediting local refineries and perpetuating a dependence on foreign oil suppliers. “There has been a wave of misinformation targeting indigenous refineries,” Idoko added. “This is part of a broader agenda to keep Nigeria reliant on foreign oil merchants.”

In response to the situation, Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria, supported Farouk’s call for transparency. “We need clear and direct communication from the regulator to address critical issues in the sector,” Isong stated.

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, also criticized the NMDPRA, along with the Nigerian National Petroleum Company Limited and International Oil Companies, for allegedly impeding the progress of local refiners. Ukadike noted that these companies have not provided adequate crude oil supplies to local refineries, exacerbating the challenges faced by indigenous operators.

As the debate continues, the local refining sector remains concerned about the future of Nigeria’s energy independence and the role of local refineries in achieving it.