Downstream sector faces deeper division
A fresh divide has emerged in Nigeria’s downstream oil sector as tank farm owners backed Dangote Petroleum Refinery’s push to stop fresh petrol imports.
Members of the Jetties and Petroleum Tank Farm Owners of Nigeria distanced themselves from the position of the Depot and Petroleum Products Marketers Association of Nigeria on fuel importation.
As a result, the disagreement has widened tensions within the petroleum industry.
The association also urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to cancel existing import licences for Premium Motor Spirit.
According to the group, local refining capacity can now meet domestic fuel demand.
JETFON rejects DAPPMAN’s position
JETFON announced its position in a communiqué released through its Executive Secretary, Mr. Olayiwola Temitope.
The statement came amid rising disputes in the downstream sector.
Earlier, Dangote Petroleum Refinery filed a fresh lawsuit challenging petrol import licences issued to marketers and the Nigerian National Petroleum Company Limited.
Meanwhile, DAPPMAN had defended the approvals.
The marketers’ group argued that fuel import licences remain necessary to protect energy security and sustain competition.
It also warned that stopping imports could create market imbalance.
However, JETFON strongly disagreed.
The association said continued fuel importation no longer makes economic sense because local refining capacity has improved significantly.
Local refining can meet national demand
JETFON stressed that Dangote Refinery and other domestic refineries have reduced Nigeria’s dependence on imported fuel.
Therefore, the group said authorities should protect local investments instead of weakening them.
It warned that fresh import permits could frustrate Nigeria’s push for energy independence.
In addition, the association said heavy dependence on foreign refined products exposes the economy to external supply disruptions, logistics challenges, and foreign exchange pressure.
As a result, the naira could remain vulnerable.
JETFON argued that prioritising local refineries would help Nigeria build a stronger and more stable domestic fuel supply system.
Import figures show decline, says association
The association also cited recent figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
According to its April 2026 factsheet, Nigeria’s daily petrol consumption rose to 51.1 million litres in April.
This marked an increase from 47.3 million litres recorded in March.
At the same time, fuel imports dropped sharply.
Daily imports fell by 37.3 percent, declining from 5.9 million litres in March to 3.7 million litres in April.
Meanwhile, local refineries, led mainly by Dangote Refinery, reportedly supplied about 40.7 million litres daily.
Because of this, JETFON said domestic refining has started taking over a major share of the market.
Group urges FG to review licences
JETFON said stronger support for local refining could reduce foreign exchange pressure, protect external reserves, and create jobs across the petroleum value chain.
Furthermore, the association argued that a stronger refining sector could boost economic growth and improve long-term energy security.
For this reason, it called on the Federal Government and NMDPRA to stop issuing fresh import licences.
It also urged regulators to review existing approvals.
However, the latest position may deepen divisions within the downstream sector.
Stakeholders remain sharply split over the future of petrol importation in Nigeria.
Meanwhile, DAPPMAN officials declined further comment, saying the association would hold internal discussions before responding publicly.
