By Our reporter

The lubricant producers association of Nigeria (LUPAN) has condemned a new policy that empowers the Nigerian Midstream and Downstream Petroleum regulatory Agency (NMDPRA) to issue import license for the importation of lubricants to Nigeria. “The policy will sound a death to the entire existing blending plants in the country, that are currently producing below 30% of installed capacities,” said Emeka Obidike, executive secretary of Lupan.  “It will kill the growth that we have recorded in the last few years in the sector, and set back the lubricant policy of the Federal Government, which is currently being perfected by the Federal Ministry of Industry, Trade and Investment.”  NMDPRA had announced in June, 2025, that it will begin the issuance of import license for the importation of lubricants as a measure to stem the influx of substandard and counterfeit lubricants into Nigeria.  However, Lupan contends that the new policy will undermine local manufacturing of lubricants and discourage investment opportunities in the lubricant Industry. Obidike explained that the limited blending capacity in the country is a consequence of the influx of finished products into Nigeria. “We have a capacity far above national demand and even export, but currently being idled because of the influx of finished products”, he added. Additionally, Obidike pointed out that the new import regime will adversely impact job creation with 200, 000 jobs up in the air. “The crime rate will be unbearable as a result of the over 200,000 (Two Hundred Thousand) direct jobs that will be affected, “Obidike disclosed. “There will be increase to breakdown of machineries all over the country, as result of low-quality lubricant imported into the country, with recycled oils without additives.”  He explained further that the new policy will “ultimately create serious compromise, leading to indiscriminate granting of import license to importers, who do not have blending plants in the country”. According to Obidike, it is important for the Nigerian government to protect its lubricant manufacturers rather than undermine their contribution to the national economy. “Every country protects the key business that they have due advantage,” Obidike emphasized. “The same is expected from your esteemed agency rather than kill the local lubricant industry as we all know that no country can achieve true greatness with total dependence on foreign products.” For his part, Emmanuel Ekpenyong, aviation operations manager, Puma Energy Tanzania said that the new policy will undermine local manufacturing of lubricants as many people will prefer to import rather produce locally because of high cost of production. He also concurred with LUPAN that the new import regime will lead to loss of jobs because when local blenders stop production, jobs will be lost.  He, however, mentioned that the shift to importation of lubes could be limited if the import duty is designed to discourage importation of lubes to the country.