The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the Federal Government’s decision to approve additional petroleum product import licences, warning that the move could worsen price instability and increase pressure on the naira.
Reacting to the recent spate of issuance of permits, IPMAN’s National Publicity Secretary, Chinedu Ukadike, called for a transparent review of the approvals by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that the licences have not achieved their intended purpose.
According to the association, imported petroleum products are being sold at prices higher than locally refined alternatives, with some licensed importers reportedly fixing petrol prices around N1,350 per litre.
Ukadike said the situation undermines the objective of using imports as a price-control measure, noting that the landing cost of imported products is about 20 per cent higher than the price offered by the Dangote Refinery to marketers.
He warned that continued reliance on expensive imports could put additional pressure on Nigeria’s foreign exchange market and contribute to the weakening of the naira, which has recently traded around N1,400 to the dollar.
The IPMAN spokesman urged the government to engage stakeholders in the downstream sector and address challenges affecting domestic refining capacity, particularly the operations of the Dangote Refinery.
He argued that local refining has already delivered a major benefit by ensuring steady fuel availability, unlike previous years when the country frequently experienced prolonged shortages due to dependence on imports.
“Now that supply has improved, the focus should be on resolving pricing challenges rather than introducing measures that could increase costs,” Ukadike said.
He called for greater support for both private and government-owned refineries, stressing that strengthening local production would improve energy security, reduce foreign exchange pressure and create opportunities for Nigeria to export refined petroleum products.
Ukadike maintained that prioritising domestic refining remains the best path toward stable fuel supply and a stronger economy.
