Group urges FG to ramp direct supply of crude to local refineries

President Bola Tinubu

The Nigeria Auto Journalists Association (NAJA) has urged President Bola Ahmed Tinubu to prioritise the direct supply of crude oil to domestic refineries, particularly Dangote Petroleum Refinery, as part of measures to address rising petrol prices linked to the ongoing crisis in the Middle East.

The association made the call amid mounting concerns over the impact of global energy market volatility on Nigeria’s fuel costs, which have come under pressure following escalating geopolitical tensions in the region.

The appeal comes just days after the Federal Government unveiled plans to distribute 100,000 compressed natural gas (CNG) conversion kits nationwide, a move aimed at easing the burden of rising petrol prices on motorists and commuters by promoting alternative fuel adoption.

While describing the CNG initiative as commendable, the association stressed that strengthening local refining capacity through a reliable supply of crude oil would provide a more sustainable solution to Nigeria’s fuel pricing challenges.

Speaking on behalf of the group, its Chairman, Theodore Opara, called on the Federal Government to implement policies that would enable domestic refineries to access crude directly from the Nigerian National Petroleum Company Limited in naira.

According to him, the current arrangement—where the Dangote Refinery imports a significant portion of its crude leaves it exposed to fluctuations in the global oil market.

“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”

He noted that Nigeria, despite being Africa’s largest crude oil producer, still depends heavily on imported refined petroleum products, a situation that continues to expose the economy to external price volatility.

“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he added.

Opara further explained that while the CNG programme offers medium-term benefits, ensuring optimal operation of domestic refineries would have a more immediate impact on petrol prices.

“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” he said.

Industry observers also argue that direct crude allocation to local refineries could ease pressure on the naira and stabilise the domestic fuel market, especially during periods of global supply disruptions.

The association maintained that combining the CNG initiative with stronger support for domestic refining would provide a balanced strategy capable of shielding Nigerian motorists from the effects of international oil market volatility.

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