The Manufacturers Association of Nigeria has raised concerns over the continued shortage of locally supplied crude oil to domestic refineries, warning that the situation is weakening Nigeria’s drive for energy security, industrial growth and lower fuel costs.
The association said the challenge has forced local refiners to increasingly rely on imported crude, reducing the expected benefits of refining petroleum products within the country.
Speaking on the issue, MAN Director-General, Segun Ajayi-Kadir, said the recent purchase of crude oil from the United Arab Emirates by the Dangote Petroleum Refinery underscores the persistent difficulty local refiners face in securing enough Nigerian crude.
According to him, domestic refineries should not have to compete with international buyers for crude produced within Nigeria, as doing so raises production costs and diminishes the economic advantages of local refining.
Ajayi-Kadir stressed that strengthening local refining is essential for reducing fuel imports, conserving foreign exchange and creating more value within Nigeria’s oil and gas sector.
He urged the Federal Government, the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission to establish a more transparent and effective domestic crude supply system that guarantees local refineries consistent access to Nigerian crude on commercial terms.
He also called for measures to increase crude production, improve pipeline security and enhance the reliability of export terminals to ensure adequate feedstock for domestic refiners while maintaining export commitments.
The MAN chief noted that Nigeria’s position as one of Africa’s leading crude oil producers should translate into greater domestic value addition rather than dependence on imported feedstock.
Ajayi-Kadir further described Dangote Refinery’s decision to source crude from the UAE as a commercial decision driven by market realities rather than diplomatic considerations. He said refiners naturally source crude based on availability, pricing, logistics and technical suitability.
While supporting the flexibility for refiners to purchase crude from international markets when necessary, he maintained that Nigeria should prioritise a stronger domestic supply framework to improve refinery operations and boost energy security.
Industry stakeholders have expressed similar views. The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said crude procurement is fundamentally a business decision influenced by commercial factors rather than patriotism.
Similarly, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said local crude supply has remained insufficient to meet the demands of large refineries such as Dangote’s, making imports necessary whenever they offer competitive pricing and availability.
He added that sourcing crude internationally is common practice in the global refining industry and should be viewed as a commercial strategy rather than a political or diplomatic issue.
