At a policy workshop in Abuja, a quiet storm brewed as Nigeria’s lubricant Producers raised the alarm over a new import licence regime.
Lubricant Producers Push Back
The Lubricant Producers Association of Nigeria (LUPAN) has strongly opposed the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) new Lubricant Import Licence policy, warning it could cripple local production, trigger mass job losses, and derail national economic objectives.
Policy Sparks Industry Backlash
During an NMDPRA workshop in Abuja, LUPAN chairman Mustapha Muhammad condemned the indiscriminate approval of licences for finished lubricant imports.
He noted that most members currently operate at just 30–40% capacity due to an oversaturated market dominated by substandard imported products.
Flood Of Low-Quality Imports
Furthermore, Muhammad explained that importers are flooding the Nigerian market with recycled, low-grade lubricants—often rerouted through Dubai—which damage vehicles and erode consumer trust in Nigerian-made alternatives.
He added that producers continue to struggle with high operational costs, unstable forex rates, poor infrastructure, and excessive taxation.
As a result, many companies have laid off workers and lost billions of naira.
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Untapped Local Capacity
Meanwhile, LUPAN, which supports over 200,000 direct and indirect jobs, asserted that its members possess the capacity to meet both local and regional demand.
However, inconsistent policies and weak government backing have hindered their growth.
Executive Secretary Emeka Obidike urged regulators to enforce stricter criteria for issuing import licences, insisting that only companies with verifiable blending plants and production capacity should qualify.
“We don’t seek protectionism,” he said.
“We demand fairness.”
Regulator Defends Policy Goals
In response, NMDPRA’s Executive Director Francis Ogaree, speaking for CEO Farouk Ahmed, clarified that the policy aims to control imports and enhance product quality.
He reiterated the Tinubu administration’s focus on local content, job creation, and industrial growth.
