By Ali Elias
LAGOS — The lubricant industry has called for deeper engagement with the Nigerian Content Development and Monitoring Board (NCDMB) to reverse the sector’s heavy dependence on imported raw materials and stimulate local manufacturing capacity, describing the segment as one of the least recognised but strategically important components of Nigeria’s oil and gas value chain.
The call was made by the Executive Secretary of the Lubricant Producers Association of Nigeria (LUPAN), Mr. Emeka Obidike, during his presentation at the just-concluded NCDMB Nigerian Oil & Gas Midstream & Downstream Summit 2026 held from May 19 to 20 at Four Points by Sheraton, Lagos.
Addressing stakeholders, Obidike painted a picture of an industry rich in opportunities but constrained by structural dependence on imports, particularly for base oil stocks and additives — the two critical raw materials required for lubricant production.
According to him, Nigeria’s lubricant market has an estimated annual demand of about 600,000 metric tonnes, yet remains entirely dependent on imported inputs.
“There are importers and independent producers, but the industry remains 100 per cent import-dependent on major raw materials and additives,” he said, adding that this presents enormous investment opportunities for local production.
He disclosed that his participation at the summit was driven by a strategic decision to initiate engagement between lubricant industry players and the NCDMB, with a view to replicating the Board’s support model already extended to other segments of the oil and gas industry.
“When I was invited to this programme, I reached out to industry players and told them this was an opportunity to start a relationship with NCDMB. The lubricant industry cannot continue to rely entirely on imports,” he stated.
Obidike cautioned against resistance to future investments in domestic manufacturing, noting that industrial expansion should be embraced rather than viewed as a threat to existing operators.
“The day major investors come into the sector and establish manufacturing capacity, we should not complain that they are trying to kill the industry. Business follows opportunity,” he remarked.
The LUPAN chief also revealed that the association maintains close engagement with key government institutions including the Ministries of Finance and Industry, the Central Bank of Nigeria and the Nigeria Customs Service to push supportive policies for local production.
He suggested that fiscal instruments such as import duty adjustments could become critical policy levers once local additive manufacturing begins in-country.
“Once a company establishes additive manufacturing locally, we will encourage government to review import duties upward to protect domestic investments,” he said.
Currently, import duty on lubricants stands at about 30 per cent, he noted.
However, he acknowledged limitations posed by regional trade commitments, particularly within the West African sub-region, stressing that outright import bans may not be feasible.
Beyond policy issues, Obidike lamented what he described as the industry’s long-standing invisibility within broader oil and gas discourse.
“One thing I want to mention is that whenever people discuss the oil industry, nobody remembers lubricants,” he said. “The entire sector needs to address this because there is opportunity here.”
His remarks underscore a broader conversation emerging from the summit around value-chain deepening, industrial localisation and the expansion of Nigerian content beyond upstream operations into midstream and downstream segments.
Rareview News Report analysis: The lubricant segment may not command the visibility of refining, gas processing or petrochemicals, but its strategic importance is difficult to ignore. Lubricants power virtually every industrial process — from automotive systems to heavy equipment and manufacturing plants. Yet, despite Nigeria’s ambition for industrial self-sufficiency, the country still imports virtually all critical lubricant inputs.
The challenge raised by LUPAN mirrors a wider issue across Nigeria’s industrial ecosystem: abundant market demand without corresponding local manufacturing depth. If NCDMB’s local content framework is successfully extended into the lubricant value chain, it could open a new frontier for industrial investment, import substitution and job creation.
For a country pursuing economic diversification, the lubricant industry may well be one of the quiet opportunities hiding in plain sight.