NLC Urges Federal Government to Sell Crude Oil to Dangote R efinery in Naira

The Nigeria Labour Congress (NLC) has called on President Bola Tinubu’s administration to adopt a policy that prioritises the sale of crude oil to the Dangote Refinery in naira rather than in foreign currency.

During a Tuesday inspection tour of the Dangote Petroleum Refinery and Fertiliser Ltd. in Ibeju-Lekki, Lagos, NLC Chairperson in Lagos State, Funmi Sesi, made a passionate appeal, emphasising that compelling the refinery to source crude oil in dollars — whether imported or locally produced — is counterproductive to the promise of reduced fuel prices for Nigerians.

Why Selling Crude in Naira Matters

Speaking to members of the Labour Writers Association of Nigeria and fellow NLC officials, Ms Sesi said:

“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.”

She stressed that local currency transactions would significantly lower refinery operational costs, leading to a sustainable drop in petrol pump prices and stabilising the Nigerian economy.

Dangote Refinery’s Strategic Importance

Ms Sesi praised the Dangote Group for creating what she described as a transformative national asset, highlighting its ability to:

Reduce Nigeria’s dependency on imported refined petroleum products
Create thousands of jobs
Boost industrial capacity and economic growth

The Dangote Refinery, with its 650,000 barrels per day processing capacity, has the potential to supply Nigeria and West Africa while producing Euro-5-compliant fuel — a standard that reduces sulphur emissions, aligning with global environmental regulations.

For more details on Dangote’s operations, visit the official Dangote Industries website.

Impact on Fuel Prices After Subsidy Removal

Following the petrol subsidy removal in 2023, Nigerians faced a sharp increase in fuel prices. However, the entry of Dangote’s refinery into the domestic market has helped stabilise prices for Premium Motor Spirit (PMS) and other refined products.

Ms Sesi noted that:

“The refinery’s operations have significantly lowered PMS prices, showing how private sector investments can lead the way in national economic recovery.”

Fertiliser Production and Food Security

The Dangote Fertiliser Company, located within the same industrial complex, already exports to international markets, boosting Nigeria’s agriculture sector by reducing the need for imported agricultural inputs.

Ms Sesi urged the government to:

Support fertiliser production to improve food security
Reduce reliance on costly agricultural imports
Encourage private sector-led innovation in farming

Dangote’s Investment in Sustainable Distribution

Speaking on behalf of Dangote Industries, Vice-President (Oil & Gas) Devakumar Edwin revealed that the company plans to introduce 4,000 Compressed Natural Gas (CNG)-powered trucks to distribute refined products nationwide.

This strategy aims to:

Reduce logistics costs (a major factor in fuel pricing)
Lower carbon emissions compared to diesel trucks
Improve nationwide distribution efficiency without displacing existing transport operators

According to Edwin:

“The deployment of 4,000 CNG-powered trucks will ensure that the benefits of domestic refining — including lower product prices — reach Nigerian consumers.”

Conclusion

The NLC’s call for crude oil sales in naira to Dangote Refinery is a critical policy proposal that could reshape Nigeria’s energy sector, reduce petrol prices, and boost economic stability. With the Dangote Refinery already producing to global standards and investing in eco-friendly logistics, Nigeria stands to gain significantly from a government-backed shift toward local currency crude transactions.

For updates on national labour policies and economic developments, follow the Nigeria Labour Congress official website.

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