A fresh row has erupted between the Federal Government and lubricant manufacturers over the issuance of import permits to bridge the country’s 60 per cent supply shortfall in the lubricant market.
At the centre of the dispute is a new policy direction championed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which industry operators say threatens local production and risks mass job losses.
Currently, local manufacturers produce only 40 per cent of Nigeria’s total lubricant demand, with the remaining 60 per cent being imported. The government says this gap must be filled, but the way forward is proving contentious.
The NMDPRA, during a stakeholders’ workshop in Abuja on Wednesday, defended its position, saying the move to regulate importation through a new digital Lubricant Importation Module is not to stifle trade but to enforce quality control and transparency.
However, lubricant producers under the Lubricants Producers Association of Nigeria accused the regulator of enabling the influx of cheap, recycled, and adulterated lubricant imports at the expense of local capacity.
In his welcome address, NMDPRA’s Authority Chief Executive, Farouk Ahmed, represented by Dr Francis Ogaree, Executive Director, Hydrocarbon Processing Plants, said the import licence is needed to bridge the shortfall.
He said, although President Bola Tinubu had insisted on the stimulation of local production, there was a need to encourage those who had already invested in the business to move forward.
“This workshop is not just another meeting but a vital platform for dialogue, learning, and alignment,” Ahmed said. “The goal is a more transparent, efficient, and quality-driven lubricant importation process. We are rolling out the Lubricant Importation Module on the Lube Oil Blending Plant Portal, integrated with the Nigeria Customs BÓdugwu platform, to simplify applications and approvals.”
He noted that the current administration is focused on stimulating local production, but the shortfall must be addressed through regulated imports. “If people are encouraged to produce, and they know we can streamline the 60 per cent that is imported, they’ll be compelled to invest,” he said.
Ahmed further warned against the circulation of adulterated products, blaming such practices for damaging engines, discouraging investment, and harming the economy. “Poor-quality lubricants don’t just damage vehicles, they erode trust, reduce productivity, and create economic waste,” he said. “This is why oversight is critical.”
But industry players aren’t buying it. LUPAN Chairman, Mustapha Mohammed, said the policy is capable of enabling the death of indigenous manufacturers by issuing import licenses to players without blending plants.
“We are already losing billions. Some of our members have lost between N2bn and N10bn. This policy is killing us,” he declared. “Those importing these cheap products are wrecking our market. Our factories are shutting down. Workers are being sent home. Instead of creating jobs, we’re losing them.”
He demanded that only registered blenders with functional plants be issued import permits going forward. Echoing the same sentiment, LUPAN Executive Secretary, Emeka Obidike, warned that the new regulatory policy threatens to wipe out gains made by the sector in recent years.
“This policy is a death sentence to existing plants operating below 30 per cent of installed capacity,” he said. “It will reverse the progress made by the Federal Ministry of Industry, Trade, and Investment in the lubricant policy.”
According to Obidike, Nigeria already has more than enough installed capacity to meet national demand, and even export, but the unchecked influx of substandard finished products has crippled domestic growth.
“The crime rate will rise. Over 200,000 direct jobs are at stake. Our machinery will suffer breakdowns due to recycled oil without additives,” he warned. He also accused regulators of acting against the spirit of the government’s ‘Renewed Hope’ industrialisation agenda.
“We are disheartened that the very agencies meant to enable a business-friendly environment are now arbitrarily rolling out policies that sabotage growth and frustrate economic revival,” he said.
Officials of the Nigeria Customs Service, who were also present at the workshop, pledged support for the government’s policy objectives. Speaking on behalf of the Comptroller-General, Bashir Adewale Adeniyi, Assistant Comptroller of Customs, Aliyu Umar, noted that Customs is focused on implementing the fiscal policies of the Federal Government, including clearance and monitoring of lubricants at the borders.
“We are committed to seamless processing of goods, including lubricants, while ensuring only approved products are allowed into the country,” he said.
Industry watchers say the confrontation reflects broader tensions in Nigeria’s industrial policy, particularly the clash between promoting self-sufficiency and meeting immediate supply needs in a high-demand sector.
While NMDPRA continues to stress regulatory compliance and quality assurance, LUPAN insists that without protection for local manufacturers, Nigeria risks losing what remains of its domestic lubricant industry.
