Nigeria’s importation of fuel from Malta, a picturesque island located in Southern Europe, has seen a staggering increase of 4,127 percent in 2023, reaching an astonishing total of $2.08 billion. This marks a dramatic rise from the mere $47.5 million recorded a decade ago in 2013, primarily driven by a significant surge in imports over the last few years.
Following an initial increase, Nigeria’s fuel importation experienced a slight rise to approximately $59.98 million in 2013, which was a modest uptick from the previous year’s figures. This upward trend continued as the nation’s fuel imports escalated further, reaching $117.01 million by 2015, reflecting the growing demand for fuel imports amidst local supply challenges.
Recent data sourced from Statisense, as reported by Vanguard, indicates that the current figure of $2.8 billion for the year 2023 represents the highest level of fuel importation the country has experienced in the last six years. This significant number underscores the ongoing challenges Nigeria faces in achieving self-sufficiency in fuel production.
In light of these developments, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has voiced strong recommendations to the government, urging them to take measures to protect and support local industries. In particular, they highlighted the importance of bolstering the Dangote Refinery to mitigate the nation’s extensive reliance on imported fuel, which places a considerable drain on the economy.
Dele Oye, the National President of NACCIMA, elaborated in a statement obtained by Vanguard. He emphasized that safeguarding local industries such as the Dangote Refinery transcends merely ensuring the availability of the cheapest products in the market. It revolves around critical issues like domestic supply security, the promotion of globally competitive industries, the enhancement of interlinkages within the local economy, the creation of job opportunities, the reduction of foreign exchange expenditures, and the overall strengthening of the Naira.
Oye cautioned against the dangers of undermining local industries, especially those with remarkable significance and scale, asserting that such actions are inherently counterproductive and detrimental to Nigeria’s broader national interests. He stressed that the focus on the protection of local industries should not only be about guarding them from international competition. Instead, it should entail cultivating a conducive environment where these industries can flourish and play a vital role in enhancing the overall economic health of the nation.
The NACCIMA President further articulated the need for policymakers to find a delicate balance between protectionism and the principle of openness. This balance is essential to facilitate the ability of local industries to compete effectively on a global scale while simultaneously supporting crucial domestic economic objectives.
In light of these discussions, Dele Oye commended Minister of State for Petroleum Resources, Heineken Lokpobiri, for organizing a high-level meeting that brought together key figures, including Aliko Dangote, the President of Dangote Group; Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Gbenga Komolafe, the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC); and Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL). This meeting aimed to actively address and resolve ongoing challenges related to the Dangote Refinery, thus paving the way for increased oil supply.
Oye reiterated the importance of the Dangote Refinery, claiming it to be akin to one of the great wonders of the modern world, serving as a remarkable symbol of innovation and entrepreneurship within the black African context. He described the refinery as a monumental achievement for Nigeria’s industrial landscape and underscored its critical role in driving the nation’s economic growth and ensuring energy security for its citizens.
Moreover, Oye reiterated NACCIMA’s strong belief that undermining such a pivotal and transformative project is not only counterproductive but also harmful to Nigeria’s development ambitions and aspirations. He urged all involved stakeholders to engage in constructive dialogue in a private and respectful manner, thereby maintaining a cooperative spirit that is essential for progress, while steering clear of public disputes that could hinder effective resolution.
