The Nigerian Labour Congress (NLC) has urged the Federal Government to halt Dangote Petroleum Refinery’s reliance on imported crude and prioritise selling domestic crude in naira to cut costs and lower fuel prices.
NLC Commends Dangote’s Market Impact
During a tour of the Dangote Refinery and Dangote Fertiliser Limited, Lagos State NLC Chairperson, Funmi Sessi, praised the scale and strategic importance of the Dangote Group’s energy investments, noting their role in stabilising Nigeria’s downstream sector.
Heavy Reliance on US Crude
Industry data reveals the $19 billion facility currently sources about 60% of its feedstock from the United States. Dangote Group President, Aliko Dangote, confirmed that around 10 million barrels were imported in July due to supply bottlenecks in the domestic upstream market.
Call for Naira-Denominated Crude Sales
The NLC argued that forcing the refinery to purchase crude in dollars erodes the economic advantages of local refining. “Nigeria has crude oil in abundance. Denying Dangote local supply in naira undermines the promise of affordable fuel,” Sessi said.
Industry Benefits of Local Currency Transactions
Energy analysts say selling crude in naira would reduce the refinery’s operational expenditure (OPEX), strengthen its 650,000 barrels-per-day capacity, and make fuel price reductions more sustainable while enhancing Nigeria’s regional export competitiveness.
Euro 5 Fuel and Global Standards
The union also highlighted Dangote’s production of Euro 5-compliant fuel with reduced sulphur content, aligning with global environmental standards and boosting Nigeria’s credibility in the international petroleum market.
Policy Opportunity for Energy Security
With government-owned refineries non-operational, the NLC urged policymakers to leverage Dangote’s full capacity to improve domestic energy security, ease foreign exchange pressure, and position Nigeria as a refined products hub in West Africa.