NNPCL Urged to Prioritize Local Refineries Over Foreign Partnerships

By  Milcah   Tanimu

A coalition of concerned Nigerian citizens has called for the Nigerian National Petroleum Corporation (NNPCL) to focus on supplying crude oil to local refineries before meeting the demands of foreign partners. During a press conference held in Abuja on January 7, the group expressed concern over reports suggesting that NNPCL plans to reduce crude oil supply to the Dangote Refinery, which processes 300,000 barrels of oil per day.

Obinna Francis, the national coordinator of the coalition, condemned this move as an attempt to hinder local investors and monopolize the oil sector. He also criticized NNPCL’s claims that the Warri and Port Harcourt refineries are operating at 60-70% capacity despite no observable production of fuel.

“The reduction in crude supply to Dangote Refinery will harm efforts to make petroleum products affordable for Nigerians,” Francis argued, pointing to the challenges Nigerians face due to fuel subsidy removal and rising PMS prices. He emphasized that the Dangote Refinery operates independently without burdening taxpayers, unlike the government-owned refineries.

The coalition also questioned NNPCL’s emphasis on loans such as Project Leopard, which seeks to raise $2 billion through crude oil exchanges. They expressed concern that such efforts only increase national debt, while foreign partnerships continue to receive priority over local refining capacity.

With Nigeria’s crude oil production reaching 1.8 million barrels per day as of November 2024, the group called on President Bola Tinubu to ensure that NNPCL prioritizes domestic refining needs. “If the Warri and Port Harcourt refineries are indeed operational, they should help lower petrol prices, not serve as a reason to reduce supply to other local refineries,” Francis stated.

The group concluded by underscoring the success of privatization in sectors like power and telecommunications, which have outperformed government-owned utilities. They urged NNPCL to adopt a more transparent and strategic approach to boosting local refining capacity and using funds that could have gone into inefficient public refineries for critical sectors like health and education.