Local refinery operators and organised labour have renewed pressure on authorities to channel more crude oil to domestic plants and bring down fuel prices after Nigeria’s daily production rose to about 1.8 million barrels.
The development follows confirmation by the Nigerian Upstream Petroleum Regulatory Commission that output has recovered from February’s dip and is now approaching 2 million barrels per day. The regulator said improved operations and the resolution of maintenance setbacks helped lift production from 1.48mbpd in February to around 1.84mbpd in March.
Reacting to the figures, the Crude Oil Refiners Association of Nigeria said higher output should immediately translate into better crude availability for local refineries, especially modular plants that rely on consistent feedstock to remain viable.
The group’s spokesperson, Eche Idoko, said refiners would step up engagement with authorities to ensure the domestic crude supply obligation is fully enforced. He welcomed reports that the Nigerian National Petroleum Company Limited plans to increase crude deliveries to the Dangote Refinery from five to seven cargoes, but argued that the volume still falls short of what the facility requires for optimal operations.
According to him, the key barrier is not just production volume but pricing terms that make it difficult for local refiners to lift cargoes profitably. He noted that modular refineries struggle to break even when crude prices are high and domestic pricing arrangements remain unfavourable.
Idoko maintained that a steady crude supply would not only improve refinery performance but also boost government revenue through taxes and levies generated from increased local refining activity.
Officials at the regulator attributed the production rebound to the completion of turnaround maintenance by several operators and repairs on critical facilities that had previously disrupted output.
At the same time, the Nigeria Labour Congress said the rise in output should bring tangible relief to Nigerians through increased local refining and lower pump prices for petrol and diesel.
A senior labour official expressed caution over the accuracy of Nigeria’s production data, citing the absence of comprehensive metering from flow stations to export terminals. He said the lack of full measurement creates uncertainty about the true scale of daily production and losses along the pipeline network.
Despite these concerns, the union argued that if production has genuinely increased, the government now has the capacity to prioritise domestic refiners and reduce exposure to volatile international markets.
Labour leaders said the country should be benefiting from higher crude prices, especially as global benchmarks remain far above Nigeria’s budget reference price. They described the situation as a potential windfall that ought to support economic stability and consumer relief.
However, the NLC warned that without stronger regulation, transparent data, and deliberate support for local refining, ordinary Nigerians may not feel the benefits of increased output.
Both refiners and labour groups agreed that unless crude supply policies are properly implemented and pricing issues resolved, higher production alone will not translate into lower fuel costs or improved energy security for the country.
