The Manufacturers Association of Nigeria has called on the Federal Government to reform Nigeria's crude oil allocation framework to guarantee local refineries priority access to domestic crude, after Dangote Petroleum Refinery purchased two cargoes of crude oil from the United Arab Emirates.
The Director-General of MAN, Segun Ajayi-Kadir, said the UAE purchase confirmed long-standing claims by domestic refiners that they were not receiving an adequate and reliable supply of Nigerian crude, forcing them to compete with international buyers for the country's own crude at international prices plus additional logistics costs.
"This situation highlights the urgent need for a more structured and transparent domestic crude oil supply framework that prioritises local refineries," Ajayi-Kadir said.
He urged the Federal Government, through the NNPCL and the Nigerian Upstream Petroleum Regulatory Commission, to ensure a sufficient and consistent share of Nigeria's crude production is allocated to domestic refining on fair commercial terms, alongside stronger pipeline security and terminal reliability.
Ajayi-Kadir said the UAE transaction should be treated as a commercial decision rather than a diplomatic development, adding that refiners typically source crude based on technical specifications, pricing, logistics and availability.
The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, described the purchase as a business decision rather than a patriotic one, saying refiners were expected to pursue the most commercially favourable opportunities available to them.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said local crude has accounted for only about 30 per cent of Dangote Refinery's feedstock since inception, citing joint venture arrangements and prior forward sales as reasons the refinery has had to source crude abroad.
Yusuf said stronger Nigeria-UAE trade ties could follow from the transaction, building on a trade protocol already signed between both countries.