For sustainable growth in the lubricant business in Nigeria, the government must strive to eliminate artificial and avoidable distortions in order to protect local manufacturers, stakeholders in the industry have said.

They stressed this at the first Nigeria Lubricant Summit held in Lagos on Tuesday.

According to the stakeholders, to ensure continuity of the business, government should reduce import duties on raw materials such as base oils, additives, and packaging materials.

In his remark, the Chairman/Technical Adviser, Lubcon Group, Mr. Jani Ibrahim, an engineer, said the industry needed greater encouragement in form of sound fiscal and stable monetary policies to reduce the inflationary trends; as well as stable and lower interest rate regime.

He said the elimination of multiple taxation would attract more local and foreign investors to the sub-sectors of the nation’s petroleum industry.

Pursuant to these, he noted, was the speedy passage of the Petroleum Industry Bill in the National Assembly.

Ibrahim said, “Quality lubricants and effective lubrication of machine elements in plants and equipment remain inseparable. Their value to the nation and global need for energy savings, keeping the wheels of industry rolling at optimal efficiency and minimal maintenance cost is instructive.

“it is also a sub-sector that is characterised by its peculiarity, secrecy, and techno-economic dynamics of engineering designs, Original Equipment Manufacturers’ specifications, research and development. It is my considered opinion that the Federal Government, through its appropriate statutory agencies, should support and protect this vibrant sector in all ramifications.”

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, in his goodwill message, said the lubricant sub-sector was one of the areas of focus of the Nigeria Industrial Revolution Plan, and his ministry had collaborated extensively with stakeholders and associations in the industry in order to move the sub-sector forward in line with the objectives of the IPR.

Aganga said, “The NIPR focuses on value addition to primary commodities to produce intermediate and finished goods for domestic and export markets.

“It also encourages labour-intensive industries with medium technology that encourages job creation and employment opportunities for our teeming youth across the country.”

A principal partner with Lubeservices Associates, Mr. Kayode Sote, said petroleum marketers in Nigeria would have to create more awareness for quality and premium lubes to improve their competitive shares.

After-sales follow up and technical services to support equipment maintenance, he noted, were major issues for competitive advantage over others.

He said, “Petroleum markers will surely pay better attention to these fundamental issues to remain in business profitably.

“it is my candid opinion that petroleum marketers – both multinational and independent companies, should, as a team, always present a well-coordinated and articulate view of the government as they affect their business to avoid a collapse of the industry, and thus move with the international market trends.”