Nigeria’s crude-for-naira initiative has come under renewed scrutiny following revelations that the Dangote Petroleum Refinery imported nearly 39.9 million barrels of crude oil worth about $4.43 billion between May and June. Oil and gas expert and public affairs analyst, Victor Udoh, argues that the scale of these imports raises serious questions about whether the policy is achieving its primary goal of ensuring sufficient domestic crude supply for local refining.
Speaking during an interview with ARISE NEWS, Udoh said the refinery spent approximately $2.6 billion importing 21 million barrels of crude in May and another $1.83 billion on 18.9 million barrels in June. According to him, a refinery operating under an effective crude-for-naira arrangement should not need to spend nearly $5 billion sourcing crude from international markets within just two months. He described the figures as clear evidence that the policy is struggling to meet industry expectations.
Udoh called on the Federal Government to clarify how much crude the Dangote Refinery currently receives under the naira-based arrangement and whether those volumes are sufficient to sustain operations. He stressed that increasing domestic crude allocations could help stabilize fuel supply and pricing across the country. According to him, ensuring adequate feedstock for local refineries is critical to reducing Nigeria’s dependence on external markets and shielding consumers from global oil price volatility.
Addressing concerns about Nigeria’s rising crude oil production figures, Udoh dismissed claims that official data was being exaggerated. He explained that the country’s historical production challenges were largely linked to crude theft, pipeline vandalism, and other criminal activities that disrupted operations. With improved security and monitoring of oil transportation infrastructure, he noted that Nigeria has gradually increased production and moved closer to meeting its output targets.
While praising the Dangote Refinery as a transformative investment for Nigeria’s energy sector, Udoh emphasized the need for stronger regulatory oversight and greater transparency in fuel pricing. He also pointed to long-standing crude swap agreements as a factor limiting the effectiveness of the crude-for-naira policy. As fuel prices continue to fluctuate across filling stations, he urged regulators to ensure that market benefits are passed on to consumers while maintaining a fair environment for investors. The debate surrounding the policy, he said, highlights the broader challenge of balancing energy security, local refining capacity, and affordable fuel for Nigerians.
source: leadership
