Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has asserted that the Dangote Petroleum Refinery has the capacity to save Nigeria more than N15 trillion yearly in fuel import costs and generate about $11 billion in foreign exchange through local refining and petroleum exports.
He called on the Nigerian National Petroleum Company Limited (NNPCL) to support local refineries rather than expose them to foreign competition, following the company’s legal dispute with Dangote Refinery.
Oye, in a statement, faulted NNPCL’s continued defence of fuel import licences, arguing that the position undermines Nigeria’s push for energy self-sufficiency and economic sovereignty.
He said Nigeria spent about N15.42 trillion on petrol imports in 2024, describing the figure as a major drain on the country’s foreign exchange reserves and evidence of a weak energy structure.
According to him, the Dangote refinery, with a capacity of 650,000 barrels per day (bpd), can meet over 90 per cent of Nigeria’s domestic fuel demand if fully integrated into the national supply system.
Oye added that greater reliance on local refining could save the country up to $11 billion yearly in foreign exchange outflows, ease pressure on the naira and improve macroeconomic stability.
He faulted NNPCL’s claim that continued fuel imports were necessary to sustain competition, arguing that they only deepened Nigeria’s dependence on foreign refineries while discouraging local industrial growth.
“NNPCL’s insistence on maintaining import licences for foreign-sourced products while a domestic facility can meet demand is tantamount to penalising the player who built the stadium while rewarding those who merely show up to play,” Oye said.
He also maintained that the Petroleum Industry Act (PIA) 2021 and the Nigerian Oil and Gas Industry Content Development Act both prioritise domestic refining and local value addition, stressing that imports should serve only as a temporary measure when local refining capacity is insufficient.
Oye questioned NNPC’s position on monopoly concerns, noting that the company still relies heavily on foreign supply chains to meet local fuel demand, despite raising concerns about a private refinery dominating the market.
IN an interview on Arise News yesterday, Oye said NNPCL’s responsibility should be to strengthen domestic refining capacity and remove obstacles facing Nigerian investors in the oil sector.
The dispute followed NNPCL’s opposition to Dangote Refinery’s attempt to challenge import licences issued to rival fuel marketers.
NNPCL argued in court filings that limiting imports could create monopoly risks and threaten supply stability.
But Oye said the argument against Dangote Refinery was misplaced, insisting the refinery had instead broken NNPCL’s dominance in fuel importation.
