It’s baffling. Nigeria, Africa’s largest oil producer, with the newly functional Dangote Refinery—the largest in the continent—still imports Premium Motor Spirit (PMS) to meet its domestic demand. Why are we importing what we can produce locally? This paradox points to something far more insidious than logistical or market factors. It raises the uncomfortable specter of corruption, deeply embedded in the very structure of our oil industry, particularly within the Nigerian National Petroleum Company Limited (NNPCL).
Over the years, NNPCL has been at the center of numerous corruption scandals, from allegations of mismanagement to inflated fuel contracts and shady subsidy schemes. And now, despite local refining capabilities, the continuation of PMS imports suggests that corruption may still be steering the ship. The lingering question is: who benefits from the current state of affairs?
It’s no secret that importation of fuel has historically been a highly lucrative business in Nigeria, one where a few well-placed individuals profit at the expense of the wider population. Even after the so-called removal of fuel subsidies, one can’t help but wonder if disguised forms of these schemes still exist. Could it be that certain players within NNPCL are deliberately keeping the importation wheels turning, ensuring that they continue to cash in on inflated import contracts or kickbacks?
The opacity surrounding fuel import contracts is troubling. NNPCL has not been forthcoming about how much PMS is being refined locally versus how much is imported. This lack of transparency raises suspicions. When the NNPCL spokesperson fails to respond to requests for detailed delivery figures from Dangote Refinery, what are they hiding? What might be going on behind closed doors?
There’s also the issue of oil marketers—some of whom, I suspect, are well-entrenched in the old import license regime. These marketers, who stand to lose out if local refining meets all of Nigeria’s PMS needs, may have a vested interest in seeing imports continue. With deregulation in place, one would expect the market to be more competitive and prices to reflect local production. Yet, we see inflated prices from Dangote Refinery, with reports of PMS going for as high as N1,019 per liter in certain parts of the country. This begs the question: is this price inflation being orchestrated to keep the door open for continued importation?
Further complicating matters is the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which oversees the quality testing of imported fuel. While their role is critical in ensuring that substandard fuel doesn’t flood the market, the layers of bureaucracy provide ample opportunity for corrupt practices. It wouldn’t be far-fetched to assume that some officials within NMDPRA might turn a blind eye to questionable imports in exchange for bribes or favors.
Even more damning is the fact that we see fuel shortages in the market—just days after there were reports of excess supply from Dangote Refinery. How does this happen? Why would we be experiencing scarcity if we have a functional refinery and an abundance of local supply? Could these shortages be artificially created to justify continued imports, thus perpetuating the cycle of corruption that has long plagued Nigeria’s oil sector?
The reality is, there are powerful forces at play here. Despite local refining efforts, these forces seem determined to maintain the old order—an order where Nigeria relies on foreign imports, and a few individuals within NNPCL and other regulatory bodies profit handsomely. Meanwhile, ordinary Nigerians are left to grapple with the consequences: skyrocketing fuel prices, inflation, and economic hardship.
If Nigeria is serious about solving this problem, we need to start by shining a light on the corruption that continues to fester in our oil industry. NNPCL needs to be held accountable for its lack of transparency. The government must ensure that local refining is prioritized, and that any gaps in the supply chain are addressed swiftly. Most importantly, those who profit from keeping Nigeria dependent on imported fuel must be exposed and brought to justice.
The continued importation of PMS is more than just a logistical issue—it is a symbol of the deep-rooted corruption that has kept Nigeria’s oil sector from reaching its full potential. Until we confront these forces head-on, Nigerians will continue to pay the price for a system rigged to benefit a select few.
It’s time for change. It’s time to demand answers. Why are we still importing PMS when we can refine it at home? The answer, though uncomfortable, is right in front of us—corruption. And until that is eradicated, Nigeria will remain trapped in this vicious cycle.
By Hon. Chimazuru Nnadi-Oforgu
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