Operators split as tank farms back local refining

A significant rift has emerged within Nigeria's downstream oil sector, pitting the Jetties and Petroleum Tank Farm Owners of Nigeria (JETFON) against the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). JETFON has publicly declared its support for the Dangote Petroleum Refinery's stance against fresh petrol imports, a move that directly challenges DAPPMAN's position.

JETFON's Executive Secretary, Mr. Olayiwola Temitope, stated that the association is calling for the cancellation of existing Premium Motor Spirit (PMS) import licenses. This demand is based on the assertion that Nigeria's burgeoning local refining capacity, particularly that of the Dangote refinery, is now sufficient to meet the nation's domestic demand. This perspective directly contrasts with DAPPMAN's argument that import licenses are crucial for ensuring energy security and maintaining competition in a deregulated market.

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Relying on foreign refined products leaves the local economy vulnerable to external supply chain shocks, international logistics disruptions, and continuous foreign exchange pressures that weaken the naira.

From a Nigerian perspective, this debate is critical. The push for local refining capacity, championed by entities like the Dangote Refinery, is seen as a vital step towards achieving energy independence and conserving foreign exchange. JETFON's backing of this initiative highlights a growing sentiment that Nigeria should prioritize and protect its domestic industrial capabilities. The association warns that continued reliance on imported refined products leaves the economy vulnerable to global supply chain disruptions and currency fluctuations, which have historically plagued Nigeria.

The Nigerian media, such as The Punch, has been closely following this intra-industry conflict. JETFON's stance is framed as a patriotic move to bolster local investment and foster a self-sustaining fuel supply ecosystem. By opposing further imports, they aim to shield nascent local refineries from undue competition, thereby safeguarding billions invested in domestic infrastructure and aligning with the national objective of achieving energy self-sufficiency.

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By prioritising local refineries, Nigeria can build a self-sustaining and secure domestic fuel supply ecosystem.