NIGERIA FACES LUBRICANT SQUEEZE AS IMPORTS TIGHTEN GLOBALLY

Nigeria is experiencing a significant shortage of lubricants as global supply constraints and tightening import regulations create pressure on the domestic market, affecting industrial operations and vehicle maintenance across the country.

Industry stakeholders have raised concerns over the rising cost and limited availability of essential lubricants, including engine oils, hydraulic fluids, and greases, which are critical for manufacturing, transportation, and power generation. The situation has been exacerbated by global supply chain disruptions, higher crude oil prices, and stricter environmental compliance requirements in major exporting countries.

The Chairman of the Lubricant Manufacturers Association of Nigeria (LUMAN), Mr. Adebayo Olawale, described the current squeeze as “worrisome.” “We are facing serious challenges with raw material imports. Many of our members are operating below capacity, and this is beginning to affect end-users in critical sectors,” Olawale stated.

Major importers and distributors have reported delays in clearing shipments at the ports, compounded by foreign exchange scarcity and increased documentation requirements. This has led to a sharp rise in lubricant prices, with some grades recording increases of up to 35% in the last two months.

The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to intervene by providing foreign exchange support and reviewing import policies to ensure steady supply of base oils and additives. “Lubricants are essential inputs for industrial production. Any prolonged shortage will have ripple effects on the economy,” a MAN representative noted.

Analysts believe the situation highlights Nigeria’s vulnerability to global commodity shocks and the need to develop local refining and blending capacity for lubricants. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured stakeholders that it is monitoring the market closely and working with importers to mitigate the impact.

As industries grapple with the squeeze, experts urge accelerated investment in domestic production to reduce dependence on imports and build resilience in the lubricants supply chain. The coming months will be critical in determining how effectively Nigeria manages this emerging challenge.