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The Lubricant Producers Association of Nigeria (LUPAN) has strongly opposed a proposed policy that would require an import permit for all lubricants brought into the country, warning that the move could cripple the local industry, reverse recent gains, and significantly undermine the Federal Government’s backward integration agenda.
Speaking at a presentation held on June 25, 2025, at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) headquarters in Abuja, LUPAN, represented by its Executive Secretary, Emeka Obidike, described the policy as a direct threat to the survival of Nigeria’s indigenous lubricant manufacturing sector.
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According to Obidike, the industry is already producing at less than 30 percent of its installed capacity due to the unchecked influx of imported finished lubricants.
He warned that the new import permit requirement would worsen the situation, rendering many local plants redundant.
“This policy, if implemented, will be a death knell to the entire lubricant production industry in Nigeria,” Obidike declared. “We have sufficient capacity to meet local demand and even export, but we are being strangled by the importation of finished lubricants, many of which are of questionable quality and lack the necessary additives.”
LUPAN expressed concern that the proposed policy contradicts the Federal Government’s lubricant industry policy currently being fine-tuned by the Federal Ministry of Industry, Trade and Investment.
The group emphasised that the move would discourage new investments, push existing companies towards insolvency, and cost the nation over 200,000 direct jobs.
“It is the responsibility of all organs of government to implement policies that support the Renewed Hope Agenda of the current administration,” Obidike noted. “This policy works against that vision and could lead to widespread economic and social consequences, including rising unemployment and increased crime rates.”
The association also warned of a potential spike in machinery breakdowns across the country due to the likely influx of low-grade imported lubricants, some of which are recycled oils without standard additives.
Citing multiple barriers already facing local manufacturers — such as power shortages, multiple taxation, foreign exchange volatility, poor infrastructure, and high bank interest rates — LUPAN argued that the proposed import permit system would tilt the playing field even further in favor of importers.
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“No country that seeks true economic greatness should depend heavily on foreign products at the expense of its local industry,” the group stated, urging the NMDPRA to reconsider the policy in light of its damaging implications.
LUPAN appealed to the Authority Chief Executive of NMDPRA to intervene and halt the implementation of the import permit requirement. The association reaffirmed its commitment to working collaboratively with the agency in promoting industry standards, self-sufficiency, and economic growth.
“Let us make Nigeria great by promoting our local industry,” Obidike concluded.
