The Central for the Promotion of Private Enterprise (CPPE) has criticised the Nigerian government for issuing new petrol import licences to fuel marketers, arguing the decision contradicts the country’s stated push to rely more on local refining capacity—particularly that of Dangote Refinery, which it says can cover domestic demand.
Key takeaways
- CPPE condemned Nigeria’s fresh issuance of petrol import licences to petroleum marketers.
- CPPE said Dangote Refinery’s output capacity is sufficient to meet Nigeria’s domestic consumption needs.
- The CPPE chief executive made the remarks in a statement made on Sunday.
- CPPE argued that prosperity is driven by production, refining, manufacturing, and stronger domestic value creation.
- The group rejected claims that Dangote Refinery poses a monopoly threat.
- CPPE warned that undermining major industrial investment could deter both local and foreign investors.
Licence renewals draw criticism
CPPE said the Nigerian government’s move comes despite the existence of refining capacity that, in the group’s view, should reduce the need for importing petrol. The organisation’s chief executive officer raised the concern in a Sunday statement, targeting the government’s decision to issue additional import permissions to petroleum marketers.
The criticism follows the recent action by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which granted petrol import licences to petroleum marketers. CPPE framed the step as unnecessary and economically inconsistent, given the country’s refining position.
Legal dispute and opposition from NNPCL
CPPE’s remarks also sit against a backdrop of litigation involving Dangote Refinery. Dangote Refinery had turned to the courts, citing the country’s Petroleum Industry Act, after the government proceeded with the issuance of petrol import licences.
Separate reporting indicated that the Nigerian National Petroleum Company Limited challenged the refinery’s case tied to the new import licences. The dispute centres on a refinery capacity figure of 650,000 barrels per day, with NNPCL reportedly resisting the challenge.
Industrial stakeholders have reacted to the developments, with CPPE saying the actions have drawn pushback, particularly directed at NNPCL and the regulator, NMDPRA.
CPPE argues against “importation-first” policy
In its response, CPPE argued that importing fuel is not a foundation for national prosperity. The group said attempts to characterise Dangote Refinery as a monopolistic threat are both flawed and unfair.
CPPE added that successful economies are built on domestic production and the full chain of industrial activity—refining, manufacturing, and value addition—alongside efforts to strengthen local productive capacity.
“Attempts to portray Dangote Refinery as a monopolistic threat are simplistic, fundamentally flawed and grossly unfair,” CPPE said. The group also cautioned Nigeria against discouraging investment, saying the country should not “demonise” what it described as audacious investment, industrial courage, scale, and risk-taking.
CPPE further warned that a government stance that undermines transformative industrial investment sends “deeply troubling signals” to both domestic and international investors, potentially affecting future capital flows into the sector.
