KEY POINTS
- CPPE condemned the Federal Government’s issuance of fresh petrol import licences despite Dangote Refinery’s refining capacity.
- Dangote Refinery sued the government, arguing that the Petroleum Industry Act discourages unnecessary fuel imports.
- CPPE warned that undermining major local investments could damage investor confidence and hurt Nigeria’s industrial growth.
The Centre for the Promotion of Private Enterprise, CPPE, has criticised the Federal Government over the recent issuance of fresh petrol import licences to petroleum marketers, despite the operational capacity of the Dangote Refinery to meet Nigeria’s domestic fuel needs.
The Chief Executive Officer of the economic think tank made the position known in a statement released on Sunday, describing the move as harmful to Nigeria’s industrial growth and economic aspirations.
The criticism followed the decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to grant new import permits for Premium Motor Spirit (PMS), commonly known as petrol, to oil marketers across the country.
Dangote Refinery Takes Legal Action
The controversy intensified after the 650,000 barrels-per-day Dangote Refinery instituted a lawsuit against the Federal Government, challenging the continued issuance of petrol import licences.
The refinery based its legal action on provisions of the Petroleum Industry Act (PIA), arguing that import licences should only be issued when there is insufficient local refining capacity to satisfy domestic demand.
Reports also indicated that the Nigerian National Petroleum Company Limited (NNPCL) opposed the refinery’s legal challenge, warning that restricting fuel imports could threaten supply stability and energy security in the country.
The disagreement has since sparked heated reactions among industry stakeholders, with several groups accusing regulators and state-owned oil agencies of undermining local refining efforts.
Reacting to the development, CPPE maintained that no nation can attain sustainable prosperity through excessive dependence on imports.
The organisation stressed that countries that have achieved economic success did so by prioritising production, manufacturing, refining, value addition and the strengthening of domestic industries.
According to the group, efforts to label the Dangote Refinery as a monopolistic threat are unfair and misleading.
