The Nigeria Labour Congress (NLC) has called on the Federal Government to prioritise selling crude oil to the Dangote Refinery in the local currency, arguing that such a move would help drive down fuel prices and reinforce Nigeria’s refining capacity.
Speaking during a tour of the Dangote Petroleum Refinery and Fertilizer Ltd. in Lagos by members of the Labour Writers Association of Nigeria (LAWAN) and NLC officials, the Lagos State NLC Chairperson, Funmi Sesi, criticised the current arrangement where the refinery is compelled to import crude or buy locally in dollars. She warned that the practice undermines the promise of affordable fuel for Nigerians.
“This country has crude oil in abundance. Why is Dangote still importing crude or paying in hard currency for locally produced crude?
“If the government truly wants to lower fuel prices and support local refining, it must sell crude oil to Dangote in Naira.”
Funmi Sesi, Lagos State NLC Chairperson
According to her, sourcing crude in the local currency would significantly cut operational costs, making it possible to achieve a sustainable reduction in fuel prices.
She described the Dangote Refinery as a transformative national asset that is already bridging Nigeria’s fuel supply gap, creating jobs, and boosting industrial capacity.
“We have seen the refinery, the fertilizer plant, and other investments in this axis. The size and impact are enormous and impressive.”
Funmi Sesi, Lagos State NLC Chairperson
Sesi commended Dangote Group’s efforts, particularly in stabilising fuel prices after the removal of petrol subsidies, which triggered sharp increases in the cost of Premium Motor Spirit (PMS).
She said the refinery’s operations had already demonstrated the potential of private sector leadership in the petroleum industry by lowering PMS and other refined product prices.
“With a 650,000-barrel daily capacity, this refinery can serve not only Nigeria but the entire West African market.
“We also saw large vessels exporting fertilizers to other countries,”
Funmi Sesi, Lagos State NLC Chairperson
Sesi added that the facility’s production of Euro-5-compliant fuel aligns with global environmental standards.
“This is the pride we want, a Nigerian company producing at global standards, changing the narrative, and boosting our global standing.”
Funmi Sesi, Lagos State NLC Chairperson
She also applauded the achievements of Dangote Fertilizer Company, which exports to international markets, and urged government support to boost food security by reducing reliance on imported agricultural inputs.
CNG Trucks Deployment
On his part, Dangote Industries Vice President, Oil and Gas, Devakumar Edwin, said the refinery was a direct response to Nigeria’s long-standing dependence on imported refined products.
He explained that the facility was laying the groundwork for a sustainable and competitive refining industry that would benefit the national economy for decades to come.
Edwin disclosed plans to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks to distribute refined petroleum products across the country, a move aimed at ensuring that the benefits of domestic refining reach consumers.
“The deployment of 4,000 CNG-powered trucks will help pass down domestic refining benefits and lower product prices to consumers.”
Devakumar Edwin, Dangote Industries Vice President, Oil and Gas
He noted that the use of CNG trucks would significantly cut logistics costs a key factor influencing pump prices, while also offering environmental advantages. “CNG trucks are not only cheaper to operate but are also more environmentally friendly,” he explained.
According to Edwin, the plan is not to displace existing operators but to improve distribution efficiency so that the full benefits of local refining are realised nationwide.
Industry observers say the NLC’s demand for a shift to Naira-based crude sales aligns with the broader push for energy reforms that favour domestic production and price stability.
They argue that such a policy could strengthen the naira, reduce the burden of foreign exchange volatility on fuel pricing, and enhance energy security.
For now, the debate over crude sales policy continues, but both the NLC and Dangote Industries agree on one thing, Nigeria’s path to affordable, reliable fuel lies in maximising the potential of its local refining capacity while cutting unnecessary costs in the supply chain.
READ ALSO: Ghana Set to Smash All 2025 Economic Targets – IC Research Hails Strong H1 Performance
