A body of oil merchants known as the Major Oil Marketers Association of Nigeria (MOMAN) has opposed a proposal by the Dangote Group, recently tendered to the Nigerian Senate. According to a report, Dangote Group proposed that the government should award a licence to import any petroleum product shortfalls only to companies with active refining licences. This proposal comes ahead of the Groups oil refinery launch happening later in the year.

Although the group commended the on-going 650,000 BPD Dangote Refinery project in Lagos, the proposal has a marked tendency to create a Nigerian oil market monopoly. Therefore, MOMAN advised the federal government not to stop marketers from importing refined petroleum products when the billionaire’s refinery and others come on-stream to create an open market for the sector.

Clement Isong, Executive Secretary of MOMAN, noted that free-market competition remains the best protection for the final consumer in a statement to the press. He insisted for the government “not to limit the importation of refined products to refiners only, but allow importers with a set minimum level of investment in the oil and gas supply chain in Nigeria.”

According to a report, while the National Assembly’s Joint Committee on the Petroleum Industry Bill (PIB) met in February, the Dangote Group made a presentation demanding that the importation rights be awarded only to licensed and active refineries in Nigeria. 

In a statement, Aliyu Suleiman, Chief Strategy Officer of the Dangote Group, highlighted the critical role the Group’s new refinery would play in the Nigerian economy to address the nation’s zero production capacity.  

Suleiman requested that on the occasion when the refinery may not meet up with its obligations due to maintenance procedures, the government grants it and companies with active refining licences the right to import any product shortfalls. This idea could prevent the forces of demand and supply from determining market trends.

He added that the import volume to be allocated between participants should be based on their respective products in the preceding quarter. By implication, the Dangote Group would become the largest occasional importer of refined fuel into the country once the proposal is approved.