Protect Indigenous Lubricant Market, Producers Tell FG

1

The Lubricant Producers Association of Nigeria (LUPAN) has implored the Federal Government to protect the nation’s indigenous lubricant market with robust policy in order to ensure its growth.

Emeka Obidike,Executive Secretary of the group, made the appeal in Abuja on Thursday in a presentation to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on the proposed import permit requirement for all imported lubricants.

According to him, the Authority Chief Executive should facilitate the stoppage of the import permit requirement for all imported lubricants into the country in order to give the indigenous market a better leverage.

He lamented that the indigenous producers of lubricant have a capacity far above national demand and export, but currently being idled on account of the influx of finished products.

He warned that the policy will ground the entire existing plants in the country, currently producing below 30% of installed capacities.

He also said It will kill the growth 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 in the lubricant Industry.

He further said the Implementation of the will erode more investment opportunity in the lubricant Industry.

He added:”It’s the strata of every organs of government to carry out programmes of the federal government, therefore, this will work against the renewal hope agenda, of the current administration on backward integration policy for the manufacturing sector.

“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.

“The new policy will ultimately create serious compromise, similar to what the sector is experiencing in the indiscriminate granting of basic oil import permit license to none plants.

“It will create an unfavorable market advantage to the imported Lubes, because of many factors ie Power, Multiple Taxation, forex fluctuation, infrastructures, banks high interest etc.

“Many companies might slip into bankruptcy and insolvency because of the huge losses that would be experienced.”

He expressed disgust that the government agency is frustrating its efforts to revamp the nation’s economy, instead of helping to create more conducive environment for business to thrive.

“We thus, reiterate our appeal to the Authority Chief Executive to use your good office to facilitate the Cessation of the import permit requirement for all imported Lubricants into the country.

“We categorically affirm with depth and sincerity and humility our belief in the administrative perspicacity in your eminent office to proffer an effective solution to the afore mentioned dilemma which will soon face the industry, and effectively reclaim the situation as we, on our part pledge our unalloyed commitment to your agency, its goals and vision.”

You Might Be Interested In Provided by SyndiGate Media Inc. ( Syndigate.info ).