Fuel Subsidy: NNPCL Have No Justification Importing More Fuel Into Nigeria – APC Group

The Nigerian National Petroleum Company Limited (NNPCL) has no justification for continuing to import fuel into Nigeria despite Dangote Refinery’s capacity to meet local demand, the APC Prosperity Group has stated.

According to a statement signed by Usman Abubakar, this continued importation perpetuates Nigeria’s reliance on foreign fuel, exacerbating foreign exchange pressures and undermining the Petroleum Industry Act’s objectives.

Applauding the removal of fuel subsidies by President Bola Tinubu aimed to stimulate local refining and reduce dependence on imports, Abubakar said the Mele Kyari-led NNPC’s actions contradict this goal.

Abubakar added that Dangote Refinery boasts an impressive stock of over 500 million litres of petrol, enough to cater to Nigeria’s needs if retailers purchase from it.

Between September 15 and October 5, he noted that the refinery delivered 148 million litres of petrol, showcasing its potential to supply significantly more.

The APC Prosperity Group commended Aliko Dangote’s visionary leadership and investment in Nigeria’s refining sector.

Abubakar said his refinery exemplifies local content development and Nigeria’s potential for self-sufficiency in petroleum production.

However, he said the continued importation of fuel undermines the government’s efforts to promote local content and stimulate economic growth.

To address the crisis, Abubakar said the NNPC must halt fuel importation and support local refineries to optimize production capacity.

“The APC Prosperity Group has expressed deep concern over the ongoing petroleum crisis in Nigeria, marked by scarcity and frequent price hikes, following President Bola Tinubu’s removal of fuel subsidies. The group considers the current situation unacceptable and demands urgent attention,” he said.

“The removal of subsidies aimed to stimulate local refining and reduce dependence on imports. However, the NNPC’s continued importation of fuel, despite Dangote Refinery’s capacity to meet local demand, is counterproductive.

“Dangote Refinery has an impressive stock of over 500 million litres of petrol, enough to cater to Nigeria’s needs if retailers purchase from itz Between September 15 and October 5, the refinery delivered 148 million litres of petrol, showcasing its potential to supply significantly more.

“This underutilization of local refining capacity perpetuates Nigeria’s reliance on imported fuel, exacerbating foreign exchange pressures and undermining the Petroleum Industry Act’s objectives. The Act prioritizes domestic refining to promote energy security and self-sufficiency.

“The APC Prosperity Group commends Aliko Dangote’s visionary leadership and investment in Nigeria’s refining sector. His refinery exemplifies local content development and Nigeria’s potential for self-sufficiency in petroleum production.

“The continued importation of fuel undermines the government’s efforts to promote local content and stimulate economic growth. It is crucial that the NNPC prioritizes domestic refining to ensure energy security, reduce foreign exchange outflows, and create jobs.

“To address the crisis, the NNPC must halt fuel importation and support local refineries to optimize production capacity. The corporation should incentivize retailers to purchase from local refineries and ensure stable market conditions for domestic producers.

“The APC Prosperity Group urges the NNPC to take immediate action to address the petroleum crisis and promote Nigeria’s energy self-sufficiency, warning that failure to do so will perpetuate energy insecurity, undermine economic growth, and contradict government policy objectives.”