An energy policy group has called on President Bola Ahmed Tinubu to pause newly approved petrol import permits, cautioning that unchecked fuel imports could strain Nigeria’s foreign exchange reserves and hinder ongoing economic stabilisation efforts. The Energy Transparency and Market Justice Initiative (ETMJI) said the move could undermine the government’s push for a stronger domestic refining sector amid ongoing naira reforms.
In a statement released on Sunday in Abuja, ETMJI highlighted concerns that approvals granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) might produce unintended consequences if not carefully managed. Dr Salako Kareem, the group’s president, emphasized that Nigeria is at a critical juncture in its energy transition, and policy choices now will determine whether the country can finally reduce its reliance on imported refined petroleum products.
While acknowledging the regulator’s role in ensuring fuel availability, Kareem warned that expanding import permissions at this stage could weaken the long-term strategy needed to encourage local production. “Decisions concerning petrol importation must be carefully weighed against their long-term economic consequences,” he said, stressing that decades of effort to build domestic refining capacity could be jeopardized.
The group also warned that rising petrol imports would increase demand for foreign currency, putting additional pressure on Nigeria’s forex reserves. “If import volumes rise again, the demand for foreign currency will inevitably grow. This could strain the naira and undermine broader economic stabilisation programmes,” Kareem noted, highlighting the risk to the government’s ongoing fiscal and currency reforms.
Beyond economic concerns, ETMJI cautioned that heavy reliance on imported petrol could open the market to substandard fuel and product dumping, as seen in past decades. Kareem said that when imports dominate supply chains, fuel quality often suffers due to multiple intermediaries, creating challenges for regulators and consumers alike. “We must prioritise local refining and market integrity to safeguard Nigeria’s energy and economic future,” he concluded.
source: leadership