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Why NNPC should sell adequate crude to Dangote refinery in Naira, says NLC

Joshua Bassey
6 Min Read

The Nigerian Labour Congress (NLC) has made a case for adequate feedstock (crude oil) supply to the 650,000 bpd Dangote Petroleum Refinery by the Nigerian National Petroleum Company Limited (NNPC). The NLC says this will further guarantee constant product availability and reduce the pump prices of petrol within the local market.

The labour congress also applauded the Dangote Refinery, describing it as a transformative national asset and a vital step in bridging Nigeria’s fuel supply gap, boosting employment, and restoring public confidence in the country’s industrial capacity.

Funmi Sessi, chairman of the NLC, Lagos State Council, who led the executive members of the NLC on a visit to the refinery and Dangote Fertiliser Limited, lauded the significance of the Dangote Group’s investments, stating that the projects were already delivering tangible benefits to the Nigerian economy.

Read also: Marketers engage Dangote Refinery ahead August 15 direct supply rollou

“Today, we have seen the massive Dangote Refinery project, as well as the fertiliser plant. We have also observed some of Dangote’s other investments in this axis. It is truly enormous and highly impressive,” said the NLC chairperson. “I believe what we have seen is a clear effort to bridge the gap in the availability of essential products in the country and to create job opportunities for Nigerians and others, as well as industrialise the country.”

The union acknowledged that following the Federal Government’s removal of petrol subsidies, Nigerians experienced a sharp rise in the prices of petrol, but the entrance of Dangote Petroleum Refinery into the market helped to stabilise prices.

“It wasn’t until Dangote came into the picture that we started seeing some relief. His intervention significantly crashed the escalated prices of petrol and other refined products. That’s a clear demonstration of private sector leadership,” she stated.

The NLC urged the FG to prioritise the sale of crude oil to the Dangote Refinery in naira. The union argued that forcing the company to import crude or purchase locally in dollars undermines the promise of lower fuel prices for ordinary Nigerians.

“This country has crude oil in abundance. So why is Dangote still being made to import crude or pay for it in hard currency?” the NLC queried. “If the government is truly committed to reducing fuel prices and supporting local refining, it must sell crude oil to Dangote in naira.”

Read also: Critical considerations for the implementation of domestic crude supply obligations under the PIA – ‘Sina Sipasi

Devakumar Edwin, vice president, Oil and Gas, Dangote Industries Limited, said the planned deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks to support the distribution of refined petroleum products across Nigeria is aimed at ensuring that the benefits of domestic refining and the resulting reduction in fuel prices are fully passed on to Nigerian consumers.

Edwin stated that the introduction of the CNG-powered fleet is a strategic step to reduce logistics costs in fuel distribution — a major factor in the final pump price.

“The deployment of these 4,000 CNG-powered trucks will help us pass down the benefits of domestic refining and the reduction in product prices to consumers,” Edwin said. “The aim is to support logistics and make distribution more efficient, not to displace any existing players in the sector.”

He further explained that the use of CNG-powered trucks, in addition to being more environmentally friendly, will significantly reduce transportation expenses, ultimately making refined products more affordable for Nigerians.

Edwin also highlighted the wider impact of Dangote’s industrial ventures, particularly in stimulating competition and growth in key sectors of the Nigerian economy. He cited the Dangote Sugar Refinery as an example, noting that its success paved the way for other companies, including BUA Group and Nigerian Flour Mills, to invest in sugar production.

Read also: Modular refiners await NNPC’s crude supply six months after pledge

“We’ve seen it with sugar, and we’ve seen it with cement. The success of Dangote Cement led to the emergence of players like BUA, Mangal, and the expansion of Lafarge,” he said. “In the same way, the success of this refinery will drive the emergence of more private refineries in Nigeria.”

According to him, the Dangote Refinery is not only helping to address Nigeria’s long-standing reliance on imported refined products but is also setting the pace for a sustainable and competitive refining industry that will benefit the broader economy.

He noted that the Dangote Group has become a nurturing ground for Nigerian engineers, scientists and technicians, many of whom have gone on to work as expatriates in various countries. He assured the labour leaders of the company’s steadfast commitment to human capital development, staff welfare, and the overall well-being of the economy, emphasising that Aliko Dangote is a patriotic Nigerian fully dedicated to the nation’s progress.

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SENIOR ANALYST - LABOUR/LAGOS STATE