Nigeria’s local refinery owners, including the prominent Dangote Petroleum Refinery, have expressed confidence in their ability to end the nation’s dependence on imported refined petroleum products within 18 months, provided the Federal Government collaborates with their plans. Speaking under the aegis of the Crude Oil Refiners Association of Nigeria (CORAN), representatives highlighted the significant potential of various refineries at different stages of completion to join the 650,000-capacity Dangote Petroleum Refinery.
CORAN’s Publicity Secretary, Eche Idoko, told The PUNCH that Nigeria’s domestic refineries could satisfy the nation’s fuel needs, provided the government actively engages with them. This comes at a time when the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority, Farouk Ahmed, has stated that the country would continue importing fuel to avoid a monopoly by the Dangote refinery and ensure energy security.
Idoko emphasized the critical link between fuel costs and inflation, arguing that addressing the high cost of fuel through local production is essential for economic stability. “You can’t tackle inflation if you don’t address the pump price of petroleum products. You cannot say you have a plan to step down inflation and you are not involving the key sectors like the refineries; you have to involve us, let’s work together,” he said.
He asserted that with government support, Nigeria could completely stop importing petroleum products within 18 months, as there are multiple refineries nearing completion. Idoko also pointed out that while Nigeria has ample crude oil, theft remains a major challenge. Local refineries, by reducing the need for long pipelines, could help curb crude theft and improve the efficiency of oil production.
Further, Idoko called for a shift in how crude oil is sold to local refineries. He suggested that crude should be sold in naira rather than dollars to lower production costs and alleviate pressure on the local currency. He also urged the Federal Government to ensure international oil companies (IOCs) sell crude directly to local refiners instead of through foreign agents, a practice he claims inflates costs.
Despite assertions by the NMDPRA chief that relying solely on the Dangote refinery for fuel supply is impractical, Aliko Dangote, President of the Dangote Group, denied seeking a monopoly. He pointed to the Nigerian National Petroleum Company Limited’s $4 billion renovation of government-owned refineries as evidence against such claims.
Many Nigerians have called for government support for local refineries, hoping that this would lower the pump price of petrol and diesel. Dangote has also highlighted difficulties in securing crude from IOCs, who he claims prefer selling through foreign agents, driving up costs. He mentioned plans to begin petrol supply between August 10 and 12, though he warned that the ongoing crude crisis might force the refinery to export its products.
Shareholders, under the Pragmatic Shareholders Association of Nigeria, condemned the NMDPRA’s criticism of the Dangote refinery’s diesel quality. They praised Dangote’s investments in local development and urged support for his refinery to stabilise fuel prices and availability.
Despite assurances from NUPRC’s Chief Executive, Gbenga Komolafe, that the PIA ensures a willing-buyer, willing-seller relationship for crude sales, Dangote officials insist that IOCs continue to frustrate efforts to secure locally-produced crude. They urged the NUPRC to address the pricing issues that place local refiners at a disadvantage compared to international traders.
