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ABUJA – A coalition of civil society organisations has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of frustrating the growth of domestic refining and protecting entrenched interests in the fuel importation business, warning that the development poses a serious threat to Nigeria’s economic recovery and investment climate.

The Coalition of Civil Society Groups for Peace, Security, Good Governance, Equity and Justice made the allegation in a statement issued on Saturday and signed by its National Coordinator, Comrade James Okoronkwo.

The coalition specifically accused the regulatory agency of creating obstacles for the operations of the $20 billion Dangote Petroleum Refinery, despite its strategic importance to Nigeria’s energy security and industrial development.

According to the group, the continued importation of allegedly substandard petroleum products into Nigeria, despite the country’s growing domestic refining capacity, raises concerns about the commitment of regulators to supporting indigenous investments.

Concerns Over Fuel Imports

The coalition alleged that the NMDPRA continues to approve the importation of high-sulphur petroleum products from countries including Malta and Russia, even as locally refined products of higher environmental standards are becoming available.

It argued that the sustained dependence on imported fuel has had adverse consequences for the Nigerian economy, including pressure on foreign exchange, environmental degradation and increased operational costs for businesses and consumers.

The group maintained that the commissioning of the Dangote Refinery, one of the world’s largest single-train refineries, offered Nigeria an opportunity to significantly reduce fuel imports and improve energy self-sufficiency.

However, it claimed that regulatory actions have slowed the refinery’s ability to fully dominate the domestic market.

‘Monopoly’ Debate Dismissed

Addressing concerns that the Dangote Refinery could become a monopoly, the coalition rejected the narrative, insisting that private investors should not be penalised for undertaking projects that successive governments failed to deliver.

The statement noted that while the Federal Government spent billions of dollars on the rehabilitation of state-owned refineries without achieving the desired results, private capital succeeded in establishing a world-class refining facility capable of transforming Nigeria’s downstream petroleum sector.

The coalition described claims of a potential monopoly as an attempt to protect vested interests within the fuel importation business.

Threat to Investment Climate

The group further warned that the alleged treatment of a major indigenous investor could send negative signals to both domestic and foreign investors considering opportunities in Nigeria.

According to the coalition, the regulatory challenges facing the refinery risk undermining investor confidence and could weaken efforts by the administration of President Bola Ahmed Tinubu to attract foreign direct investment into critical sectors of the economy.

It argued that if a local investor capable of committing $20 billion to a strategic national project could face persistent regulatory hurdles, potential foreign investors may become increasingly hesitant to invest in the country.

Calls for Policy Intervention

The coalition called on the Federal Government to immediately prohibit the importation of substandard petroleum products and implement policies that prioritise domestic refining.

It also urged the authorities to provide a more enabling regulatory environment for indigenous refiners and ensure that investments in Nigeria’s energy sector are protected from what it described as anti-competitive practices.

Industry analysts say the controversy surrounding fuel imports and domestic refining is likely to remain a major issue in Nigeria’s economic discourse, particularly as the country seeks to strengthen energy security, conserve foreign exchange and position itself as a major refining hub in Africa.