The Independent Petroleum Marketers Association of Nigeria has rejected the recent approval of additional import licenses for petroleum products, warning that the move is worsening price volatility and putting further pressure on the naira.

National Publicity Secretary Chinedu Ukadike urged the federal government to review the matter transparently through the Nigerian Midstream and Downstream Petroleum Regulatory Authority. He said the licenses, intended to serve as a check on domestically refined fuel, were not achieving their purpose, noting that some companies granted import licenses are pricing fuel at around 1,350 naira per liter, well above what the Dangote refinery charges marketers.

He said if the goal of the licenses was to moderate domestic prices, that objective has been defeated, adding that landing costs for imported fuel run about 20 percent higher than the Dangote refinery’s prices. He argued that importing fuel at a higher cost than what is locally available places unnecessary strain on the country’s foreign reserves and the naira, linking this pressure to the dollar’s recent rise to about 1,400 naira and its effect on pump prices nationwide.

Ukadike called on the government to work with the presidential committee on the downstream sector to address challenges facing the Dangote refinery and ensure it continues receiving support to meet domestic demand. He said one major gain from local refining has been a steady, uninterrupted fuel supply, something Nigeria struggled to maintain when it depended heavily on imports, arguing that the country’s real challenge now is pricing rather than supply.

He called for stronger support for local refining capacity, including government owned refineries alongside Dangote, saying this is essential for energy security, and suggested Nigeria could eventually export finished petroleum products once domestic needs are met. He recalled earlier periods when the country faced fuel scarcity lasting weeks at a time, noting that such shortages have largely disappeared since local refining began, and urged the government to prioritize domestic refining over further import licenses.