See why marketers is warning FG not to ban fuel importation in Nigeria

• Marketers person sent a enactment of informing Nigerian authorities connected plans to hurriedly prohibition substance importation
• The marketers nether the aegis of IPMAN and PETROAN accidental that Dangote Refinery is operational, and different refineries are inactive nether construction
• President Bola Tinubu precocious approved the 'Nigeria First Policy' aims to prioritise section goods and services

Legit.ng journalist Dave Ibemere has implicit a decennary of business journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Oil marketers successful Nigeria person warned that immoderate determination by the Federal Government to prohibition the importation of petroleum products could trigger nationwide substance shortages and terms hikes.

The marketers noted that immoderate prohibition could wounded the substance market, citing insufficient section refining capacity.

Marketers pass against placing a prohibition connected substance imports Photo credit: nurphoto
Source: UGC

The informing from the marketers comes pursuing President Bola Tinubu’s instauration of a “Nigeria First Policy,”.

The argumentation directs each authorities ministries, departments, and agencies to prioritise locally made goods and services.

Under the directive, foreign procurement is present taxable to a waiver from the Bureau of Public Procurement if section alternatives exist.

There has been speculation that the argumentation could widen to petroleum products.

Marketers accidental nary request to prohibition substance imports for now

Marketers nether the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) person cautioned against hasty implementation, Punch reports.

IPMAN National Vice President Hammed Fashola said:

“The authorities should not beryllium reasoning successful the absorption of banning petroleum imports now. “Only the Dangote refinery is operational. The others are inactive nether construction. Before immoderate ban, we request much refineries to guarantee substance security.”

Fashola stressed that Nigeria indispensable archetypal conscionable its regular substance depletion locally earlier contemplating a ban.

He said:

“Imported fuels inactive relationship for a important stock of nationalist demand. Banning imports present could pb to scarcity and higher prices."

Although the Dangote refinery has claimed it can conscionable home demand, Fashola warned against relying connected projections.

He added:

“Dangote has planetary commitments. Its output cannot beryllium presumed to beryllium afloat disposable to the Nigerian market.”

Dangote says its refinery tin conscionable section demands Photo credit: Bloomberg/contributor
Source: Getty Images

Similarly, PETROAN President Billy Gillis-Harry echoed the concerns, urging the authorities to attack the argumentation with caution to debar economical disruption.

Gillis-Harry noted:

“We enactment promoting section content, but a substance import prohibition present could worsen ostentation and vigor insecurity."

He argued that refining capableness remains excessively debased to enactment a prohibition and called for exemptions for indispensable goods, including petroleum products and pharmaceuticals.

He warned.

“Some products are not yet readily disposable locally. Banning imports could pb to shortages and terms surges.”

Gillis-Harry pointed to planetary precedents, specified arsenic the U.S. “America First” policy, which utilized tariffs and exemptions alternatively than outright bans to support home industries.

He said:

“We indispensable use contented and caution."

NIPCO, Ardova, 3 lipid firms import 103,800mt of petrol

Ealier, Legit.ng reported that astir 5 lipid companies person imported 103,800 metric tonnes of petrol successful the archetypal week of May.

Ardova, AA RANO, BOVAS Oil, NIPCO, and Alkanes each imported petrol successful Lagos and Calabar ports.

The improvement comes arsenic Dangote Refinery continues to pb in depot pieces astatine N837 per litre.

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Source: Legit.ng