Fuel Importers on Brink of Collapse as Domestic Refining Gains Momentum Says CORAN

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has indicated that fuel importers might soon be out of business if they overlook the growing trend towards domestic refining.

Eche Idoko, the Publicity Secretary for CORAN, mentioned this following the Federal Government's decision to reinstate the naira-for-crude agreement, despite opposition from major importers.

Idoko noted that the resistance is primarily from depot owners benefiting from fuel imports. He compared them to water vendors worried about losing clientele once efficient pipelines are operational. 

He noted that these marketers are resistant to altering their business models, despite the expansion of local refining.

Reports indicate that fuel importers faced losses of up to N76.5 billion in March due to price reductions by Dangote Refinery. The marketers stated they had to sell at a loss as consumers opted for more affordable fuel options.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed its opposition to the policy of trading crude oil for naira, stating that it adversely affects foreign exchange revenue and deters potential investors. Olufemi Adewole, the Executive Secretary of DAPPMAN, emphasized that crude oil transactions should be conducted in dollars to be consistent with international market practices.