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PENGASSAN fires back as Shettima defends Dangote

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The Petroleum and Natural Gas Senior Staff Association of Nigeria has tackled the Presidency over comments by Vice President Kashim Shettima condemning its industrial action over a rift with the Dangote refinery.

PENGASSAN told The PUNCH on Monday that it would take same action if its members were sacked again.

This comes as some individuals staged a protest in Kaduna, accusing PENGASSAN of attempting to sabotage the Dangote refinery.

PENGASSAN had last week shut down critical oil and gas facilities over allegations that Dangote refinery sacked 800 workers who joined the union. But the Dangote refinery said it only sacked a few workers who were sabotaging the facility, saying this was part of the company’s reorganisation.

But oil and gas workers embarked on a strike in defence of their colleagues, causing the nation losses in oil and gas production as well as a drop in power generation.

The intervention of the Federal Government restored normalcy as PENGASSAN suspended the strike on Wednesday after the Dangote Group was asked to redeploy the sacked workers to other business units.

Despite the suspension of the strike that caused queues in filling stations, the price of cooking gas has yet to return to about N900 per kg, as it still sold for N2,000 in Lagos and other places as of Monday.

Speaking on Monday at the opening of the 2025 Nigerian Economic Summit in Abuja, Shettima described Dangote as an institution and a pillar of Nigeria’s economic development. He warned that Nigeria is greater than PENGASSAN, and no one should hold the country to ransom.

“Aliko Dangote is not an individual; he’s an institution, and he’s a leading light in Nigeria’s economic parliament,” the Vice President said.

“And how we treat this gentleman will determine how outsiders will judge us. If he had invested $10bn in Microsoft, in Amazon, or in Google, he probably might be worth $70 to $80bn by now. But he opted to invest in his country, and we owe it to future generations to jealously protect, promote, preserve, and protect the interests of this great Nigeria.

“I wish to call for caution, retrospection, and a deeper sense of patriotism from both labour and the organised private sector in defining and improving the relationship between labour and industry in the interest of maintaining our steadily improving economic fortunes. It’s not about holding the whole nation to ransom because of a minor labour dispute.

“Nigeria is greater than PENGASSAN. Nigeria is greater than each and every one of us,” Shettima emphasised.

Reacting, the National President of PENGASSAN, Festus Osifo, said the nation was bigger than Dangote and the Presidency as well.

According to Osifo, PENGASSAN had a mandate to protect the jobs of its members sacked by the Dangote refinery for joining the association. This mandate, he said, would be discharged whenever the next arises.

“Of course the nation is bigger than PENGASSAN, the way it’s bigger than Dangote and the Presidency. We have a mandate to protect the jobs of our members, that we will discharge whenever the need arises,” Osifo told The PUNCH.

Osifo, who doubles as the President of the Trade Union Congress, stressed that if the same situation that led to the sack of its workers occured again, it would deploy the same strike action to address it.

“Should this same event occur again tomorrow, our approach will be exactly the same,” he stated.

Asked for his reaction to social media comments that the Federal Government might be pushed to dissolve PENGASSAN because a strike by its members threatened energy security, Osifo responded, “Does the law prohibit workers’ right to strike?”

Similarly, the General Secretary of PENGASSAN, Lumumba Okugbawa, said, “Is Nigeria not bigger than any individual or institution?”

Also speaking, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the Federal Government would not relent in its support for domestic production as part of efforts to stabilise the economy and sustain growth.

“The next focus of government is sustaining the reform for achieving growth and development. Inflationary expectations are on the decline, and we shall continue to support domestic production,” he said.

Bagudu explained that reforms introduced May 2023 had helped avert fiscal collapse, ease macroeconomic pressures, and strengthen resilience.

He said the removal of fuel subsidies, deregulation of the foreign exchange market, tighter borrowing discipline and the naira-for-crude policy were bold choices that laid the foundation for stability.

The minister added that reforms were beginning to yield results, with GDP growth improving to 3.4 per cent in 2024 and further strengthening into 2025.

According to him, the government is prioritising agriculture, manufacturing and infrastructure to sustain the downward trend in inflation and ease the cost of living.

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He stressed that expanding access to credit, mechanisation, storage and transportation remained critical.

Bagudu projected GDP growth of 4.6 per cent in 2025 and said the upcoming National Development Plan 2026–2030 targets a $1tn economy by 2030, anchored on sustained reforms, diversified revenue and a stronger domestic production base.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, further said the Federal Government was determined to ensure that trade policies were translated into practical outcomes that boosted exports, created jobs and embedded Nigeria firmly in global value chains.

“The question is not just about policy ambition but about delivery. How does Nigeria translate trade policy from impact to practice, so that within the next three years exporters can begin to feel the impact? Talk is cheap, and it is time to move from words to results,” she said.

Oduwole disclosed that the government had taken concrete steps to deepen trade integration across Africa.

She noted that Nigeria was the first country to implement the five-year review of the African Continental Free Trade Area, inaugurating a central coordination committee in the second quarter of 2025 to provide a clear roadmap for stakeholders.

“We submitted our tariff schedules and indicated interest to serve as the territorial champion under AfCFTA, and that was announced in February. We are aligning private sector dynamism with public reform to ensure Nigeria is not left behind,” she added.

According to her, the ministry has negotiated with countries including Uganda and Ecuador, identifying opportunities for Nigerian businesses in apparel, light manufacturing and cosmetics.

On structural barriers such as high trade costs, congested ports and export rejections, Oduwole said government was working on reforms to cut costs by as much as 75 per cent, streamline agencies, and strengthen standards.

“It is about taking policy from paper to practice and ensuring that our exporters and manufacturers feel the impact. That is the practical work we have been doing in the last 10 to 11 months,” she said.

In his opening address, the Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, warned that the way the country treated its domestic investors would determine the confidence of foreign investors in committing long-term capital to Nigeria.

He cited persistent inflationary pressures, high debt service obligations and subdued investor confidence as major obstacles to inclusive growth.

According to him, Nigeria is currently in the stabilisation phase, but he cautioned that progress could be lost if reforms were not deepened.

“Stabilisation has given us breathing space, but it is not the destination. We must consolidate and accelerate reforms deliberately to avoid sliding backwards,” he said.

The NESG chairman outlined seven areas that should guide reform consolidation, including industrialisation, infrastructure, investor confidence, fiscal sustainability, inclusion, institutional strengthening and security.

He added that micro, small and medium enterprises must be supported with affordable finance, stable power and technology to drive industrial growth.

He emphasised that policies must be inclusive and felt in households through jobs, healthcare, education and social protection.

“Dead businesses don’t employ workers, they don’t pay salaries, and they don’t pay taxes,” he warned, stressing that regulators must enable, not stifle, private sector growth.

Yusuf urged policymakers to send a clear signal of credibility and trust. “Nigeria must say clearly: we will protect, not picket, investors,” he said, calling for a national framework anchored on industrialisation, infrastructure, investment, inclusion and institutions to guide the 2026–2030 National Development Plan.

Kaduna anti-PENGASSAN protest

On Monday, scores of protesters took to the streets in Kaduna to march in solidarity with the Dangote refinery, accusing those they called a well-connected oil importation cartel and elements within the labour movement of trying to frustrate the country’s nascent local refining drive.

The protest, themed ’National Unity Against Sabotage: Reclaiming Our Petroleum Sector for the People’, sought urgent government action to protect the multi-billion-dollar refinery from “systematic attacks” by the so-called elements of the oil importation cartel.

The protesters, who gathered under the aegis of Partners for National Economic Progress, converged on the Murtala Mohammed Square before winding through Alkali Road, Ali Akilu Road, Ahmadu Bello Way and Muhammadu Buhari Way, carrying placards with inscriptions such as “Protect Local Refining”, “End Fuel Import Cartel”, and “Support Dangote Refinery.”

One of the movement’s leaders, Igwe Ude-Umanta, told the crowd the Kaduna demonstration formed part of a nationwide campaign that began in Abuja on October 2.

He described the rallies as a national liberation effort aimed at saving Nigeria’s economy from forces he said were determined to keep the country dependent on imported fuel.

This struggle is against the cartel that destroyed our public refineries, killed the textile industry, and now wants to strangle the Dangote refinery. We will not let them succeed. The days of holding Nigeria hostage are over,” Ude-Umanta stated.

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He went down memory lane on Kaduna’s once-thriving textile industry, saying the same pattern of sabotage that gutted that sector was being replayed in the petroleum industry.

“Kaduna used to be a textile hub before the same pattern of sabotage destroyed it. Today, they want to replicate that in our petroleum sector by frustrating local refining. We will resist them,” he said.

PANEP leaders accused PENGASSAN of complicity, describing recent union actions as tantamount to “economic terrorism”.

PANEP urged either an outright halt to fuel importation or the imposition of heavy tariffs to protect domestic refining and related industries.

“Countries that place tariffs are not stupid; they are protecting their economies,” Ude-Umanta said, adding that importers were frightened by the prospect of local refining exposing price manipulation and corrupt practices.

Dahiru Maishanu, who also addressed the rally, said the union’s conduct had gone beyond legitimate labour protest and was instead assisting the importers’ agenda.

“What PENGASSAN did was not unionism; it was sabotage. The Federal Government should have arrested their leadership to serve as a deterrent. We cannot allow people to hide under labour unions to commit crimes against our economy,” Maishanu said.

The protesters demanded urgent intervention of President Bola Tinubu to ensure that local refineries like Dangote are supplied with crude oil on terms equal to those offered to foreign refiners.

“President Tinubu must stamp his feet. Local refineries must receive crude at the same price offered to foreign refiners. That is key to sustaining the refinery and boosting investor confidence,” they said.

They accused the union of blocking the sale of locally produced liquefied petroleum gas and aviation turbine kerosene, insisting those actions were intended to keep prices artificially high and preserve monopoly profits.

“They are punishing Nigerians to protect their greed. How can importers compete with producers? They are scared because local refining will expose their fraud and end their control over pricing,” Maishanu said.

The demonstrators praised the Dangote refinery for what they called its early impact on prices of Premium Motor Spirit and diesel, saying ordinary Nigerians were already “breathing fresh air” because of local refining.

They warned that if the refinery were undermined, the consequences would be severe for investor confidence and the wider economy.

“This movement is about economic salvation. If we allow them to kill the Dangote refinery, no investor will ever risk bringing money into this country again. We must protect this refinery as our own,” Maishanu said.

They called on the Federal Government to “crush every enemy of Nigeria’s economic progress,” urging swift policy and enforcement actions that would protect local refining capacity and punish those found to be undermining it.

In reaction, the PENGASSAN president Osifo said the protesters are “ignorant people” while Okugbawa added that “it’s their constitutional right to protest.”

PENGASSAN dissolves NGIC

The national body of PENGASSAN has reportedly dissolved its Nigerian Gas Infrastructure Company and Nigerian Gas Marketing Limited chapter for failing to shut off gas supply to the Dangote refinery during the crisis last week.

But the unit appealed the dissolution, faulting the union’s national secretariat over what it described as an unjust sanction tied to the failed attempt to shut down gas supply to the Dangote refinery.

In a formal petition to the national leadership of PENGASSAN obtained on Monday, the NGIC/NGML Congress said it received the dissolution directive “with shock and dampened spirit”, arguing that the affected executives made concerted efforts to execute the national strike order but were hindered by operational hazards and the heavy presence of security personnel at key gas facilities.

Giving a response to the dissolution, members of the union, in a petition signed by 163 members, called for the reinstatement of the officials.

The letter read in part, “We, the members of congress of NGIC/NGML PENGASSAN Branch, write to formally appeal the decision of the National PENGASSAN Secretariat to dissolve our branch leadership over perceived acts of sabotage relating to their inability to successfully execute the shutdown mandate of gas supply to Dangote refinery.

“We received the decision with shock and dampened spirit, given the effort the leadership and mobilised members of the branch put in to ensure the mandate was successfully carried out, despite several intimidation and assaults they faced all through the struggle, with emphasis on escalations at Oben Metering Station, where lives were at risk.”

“Our leaders did more than enough to carry out the directive of the nation despite their lives being at risk. The allegations of collusion and acceptance of monetary gifts from management are without evidence and false,” the congress stated.

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The NGIC workers maintained that their inability to completely enforce the shutdown stemmed from technical and safety constraints, including continuous gas injection from producers into the Escravos–Lagos Pipeline System and malfunctioning emergency shutdown valves at the Warri Gas Treatment Plant.

“NGIC assets and facilities are complex. The Warri Gas Treatment Plant, for instance, has critical safety concerns, including a faulty emergency shutdown valve that could endanger workers and surrounding communities if mishandled,” the letter explained.

The members also debunked reports suggesting a total shutdown of gas supply to the Dangote refinery.

According to the executives, at no time did they claim that the refinery had been completely shut down.

They clarified that only some valves along the line and the inlet from the OB3 pipeline through Oben were closed temporarily in an attempt to reduce pressure.

The officials added that the action was intended to cause a pressure drop that could affect supply to the refinery, but the move did not yield the expected result.

They further noted that the information relayed to the national president, suggesting that gas supply to Dangote had been cut off, was premature and based on a misunderstanding of the situation.

“It is also important to state that, at no point did the branch executives tell anyone that Dangote has been shut down 100 per cent; they only said they have shut down some valves along the line and the inlet from OB3 to the line through Oben, and they hope the pressure will drop after a few hours and Dangote will come down, all of which didn’t work out as they had expected. We note that whoever informed the national president that gas supply to the Dangote refinery was cut off had done so in haste to give good news and was impatient to wait for the outcome of the actions our comrades from NGIC took,” it added.

The congress urged PENGASSAN’s national secretariat, led by its president, to review its decision and clear the dissolved executives of the allegations of sabotage and bribery.

It also called for a fair hearing, stressing that punishing loyal members who risked their lives during the industrial action could demoralise others and weaken solidarity in future union struggles.

“We, the members of the congress, kindly note that our branch leadership did more than enough to carry out the directive of the National despite their lives being at risk. They even went ahead to do what management have labelled as “never been heard of in the history of NGIC/NGML, i.e., the shutdown of facilities and damage of assets (please note that NGIC/NGML PENGASSAN have never shut down any customer due to strike action prior to now).

“That they recorded some successes which were limited by the continuous injection of gas from producers to the ELPS and the heavy presence of military personnel, which usually outnumbered them,” the letter added.

Meanwhile, the engineers reportedly sacked by the Dangote refinery for joining PENGASSAN are still awaiting their redeployment letters.

Dangote thanks Tinubu

Dangote Petroleum Refinery commended Tinubu for his timely intervention in averting what it described as “the disruptive actions” of PENGASSAN against the company.

In a statement, the company said the President’s leadership, through his ministers and senior government officials, ensured the restoration of order and stability to the energy sector at a critical moment.

“Dangote Refinery is grateful to the President of the Federal Republic of Nigeria, Bola Tinubu, for his intervention, through his ministers and senior officials, which resulted in the abatement of the disruptive actions of PENGASSAN against the refinery,” the statement read.

According to the company, among the key government officials who worked “tirelessly” to restore normalcy were Nigeria’s security chiefs, led by the National Security Adviser, Nuhu Ribadu; the Director General of the Department of State Services, Mr Adeola Ajayi; and the Director General of the National Intelligence Agency, Mr Mohammed Mohammed.

The refinery also commended “other senior government officials who worked untiringly and determinedly into the wee hours of several nights to avert the declared disruption of Nigeria’s energy sector by anarchists and agents of darkness.”

These, it noted, included the Minister of Labour and Employment, Dr Mohammed Dingyadi; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of Budget and Economic Planning, Senator Abubakar Bagudu; and the Minister of State for Labour and Employment, Hon. Nkeiruka Onyejeocha, saying, “We remain very grateful to these officials for their patriotism and national service.”

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Hardship: Labour pushes N154,000 minimum wage

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The National Public Service Negotiating Council of the Organised Labour has formally demanded a N154,000 minimum wage, a 120 per cent upward review of salaries and allowances for public workers in Nigeria.

The new demand, according to the union, is to mitigate what it described as the “life of servitude” currently being experienced in the country.

The demand was contained in a letter addressed to the Office of the Head of the Civil Service of the Federation, dated March 12, 2026, with reference number JNPSNC/Gen/Cor/Vol 1/163.

The demand was titled “Urgent need for the upward review of salaries and allowances of workers in the Nigerian public service and commendation for the approval of gratuity payment to retiring workers.”

The letter was jointly signed by the National Chairman of JNPSNC, Benjamin Anthony, and the National Secretary, Olowoyo Gbenga.

The JNPSNC premised its demand on the outcome of an exhaustive meeting of the council held on Monday, March 9, 2026, at the AUPCTRE National Secretariat, Wuse Zone 4, Abuja, Federal Capital Territory.

The letter read, “The National leadership of Joint National Public Service Negotiating Council writes to respectfully but firmly call the attention of your esteemed office to the urgent necessity for an upward review of salaries and allowances of all serving Public Servants in the Nigerian Public Service.

“Despite their immense contributions, public service workers continue to face severe economic hardship due to the rising cost of living and the declining purchasing power of their earnings.”

The council noted that over the years, Nigeria has experienced unprecedented economic pressures characterised by high inflation, increased fuel prices, rising transportation costs, and escalating prices of food items, housing, healthcare, and education.

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“The above realities have significantly eroded the real value of workers’ salaries and have made it increasingly difficult for many public servants to maintain a decent standard of living.

“It is important to note that the last major adjustments in workers’ remuneration have not sufficiently kept pace with the current economic realities.

“Many workers are now struggling to meet basic financial obligations, which has inevitably affected the morale, motivation, and overall productivity within the Public Service.”

The council stated that the national leadership of the Joint National Public Service Negotiating Council, therefore, strongly advocates an immediate and comprehensive review of the existing salary structure and allowances to reflect current economic conditions and ensure fairness, equity, and sustainability in workers’ remuneration.

“An upward review of workers’ salaries and allowances is a desideratum,” it stated.

It further noted that workers in the Nigerian Public Service had continued to demonstrate remarkable patience, professionalism, and commitment to their duties despite the prevailing economic difficulties.

However, it stressed that concrete steps must now be taken to safeguard their welfare and dignity.

In light of the foregoing, the council called on the office of the Head of the Civil Service of the Federation to urgently initiate the necessary processes for the upward review of salaries and allowances of public servants in Nigeria.

The council asked the Office of the Head of Service to initiate immediate negotiations and direct the National Salaries, Income and Wages Commission and relevant committees to begin immediate discussions with the Joint National Public Service Negotiating Council to negotiate for an upward review of salaries and allowances.

See also  PENGASSAN declares nationwide strike over ‘mass sack’ of 800 workers at Dangote refinery

“Consequently, new salary templates should be developed such that the minimum salary payable to an officer on Grade Level 01 Step 1 shall be N154,000 per month for Federal Public Servants (120% increase in Salaries and allowances).

“Harmonise Wages: ensure that the upward review is applied across all Ministries, Departments, and Agencies (MDAs), and strongly encourage implementation at sub-national levels to ensure equity;

“Implement Cost-of-Living Adjustments: Introduce automatic, periodic salary and allowance adjustments that align with inflation rates to prevent the recurring lag between wage review cycles; and prioritise welfare components: in addition to basic salary, implement non-monetary incentives such as subsidised transportation and affordable housing for civil servants,” the letter noted.

The council emphasised that a timely upward review of public servants’ salaries and allowances is not merely an economic imperative but a social necessity to ensure the sustenance of the workforce, maintain industrial harmony, and improve the efficiency of public service delivery.

It also reiterated its commitment to constructive dialogue with the government.

“We remain committed to constructive dialogue, resourceful engagement and collaboration with the government toward achieving a fair, sustainable, and mutually beneficial outcome for all stakeholders.

“We trust that this request will receive the prompt attention and action it deserves in the interest of workers, the Public Service as an institution and the nation at large; so as to nip in the bud possible escalation that may nosedive into spontaneous social unrest,” it added.

The national leadership of the council commended President Bola Tinubu for approving 100 per cent gratuity payment to retiring federal public servants.

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The commendation was conveyed through the Head of the Civil Service of the Federation, Didi Esther Walson-Jack.

According to the council, the approval represented a major step towards improving the welfare of retiring public servants.

“From the perspective of the national leadership of the Joint National Public Service Negotiating Council, the approval is not only a positive development but also a bold step towards ensuring that retiring public servants escape the life of servitude and serfdom often being experienced when out of public service which is always characterised by impoverish life after service,” it said.

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Refineries spend N5.7tn on foreign oil despite naira-for-crude policy

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Despite its status as Africa’s largest crude oil producer, Nigeria imported crude oil worth a staggering N5.734tn between January and December 2025 as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector, The PUNCH reports.

This comes in spite of the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.

Yet, even as the policy sought to channel crude to local refineries, Nigeria produced 530.41 million barrels and earned about N55.5tn from crude oil sales in 2025, highlighting a stark disconnect between robust upstream output and domestic supply shortages.

Data obtained from the National Bureau of Statistics and analysed by our correspondent on Tuesday, showed that the surge represents a dramatic shift from 2024, when no crude imports were recorded, indicating a 100 per cent increase year-on-year.

An analysis of the NBS Foreign Trade in Goods Statistics report revealed that crude oil imports, classified under “Petroleum oils and oils obtained from bituminous minerals, crude”, became one of Nigeria’s major import items in 2025, driven by supply shortages to domestic refineries.

In the first quarter alone, Nigeria imported crude worth N1.19tn, underscoring the urgency with which refinery operators turned to alternative feedstock sources.

The figure rose sharply by about 37.8 per cent to N1.64tn in the second quarter, before climbing further by 46.5 per cent to N2.403tn in the third quarter, reflecting intensifying domestic supply constraints.

However, imports dropped steeply by approximately 79.2 per cent to N499.75bn in the fourth quarter, suggesting a late-year easing in demand or improved local availability, though still indicative of a volatile and inconsistent crude supply environment throughout the year.

Although the NBS report did not name specific refineries, the pattern reflects the broader systemic failure in aligning domestic crude production with local refining demand.

A further breakdown of the figures shows wide monthly fluctuations in crude imports, reflecting unstable supply conditions in the domestic market.

Refineries imported crude worth N335.69bn in January, rising by 32.6 per cent to N445.27bn in February, before declining by 8.5 per cent to N407.29bn in March.

Imports dipped slightly to N335.31bn in April but surged dramatically by 116 per cent to N724.23bn in May, suggesting heightened supply constraints locally.

In June, imports fell by 19.5 per cent to N582.94bn, before spiking to a yearly peak of N1.28tn in July, an increase of about 120 per cent, marking the highest monthly import bill in the year.

This was followed by a 51.8 per cent drop to N619.24bn in August, and further declines to N499.41bn in September and N407.08bn in October.

Imports plunged sharply by 77.2 per cent to N92.67bn in November, before dropping to zero in December, indicating a temporary easing of demand or improved local supply towards year-end.

Overall, the trend underscores a volatile supply environment, with refineries forced to adjust sourcing strategies month by month.

Findings by The PUNCH indicate that local refineries, ranging from modular plants to mega facilities such as the Dangote Refinery, are increasingly turning to international markets due to persistent challenges in sourcing crude domestically.

The refineries cite a combination of structural and commercial factors behind the development.

This was confirmed by the Crude Oil Refinery-owners Association of Nigeria, which noted that refineries turn to imports for survival and increased production capacity.

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The CORAN Publicity secretary, Eche Idoko, stated in an interview that domestic refiners within the supply chain have been marginalised.

He confirmed that for several months, no allocation has been received under the Domestic Crude Oil Supply Obligation framework, naira for crude policy or through any other special arrangements.

He said, “Local refiners, especially the modular refineries, have not been getting crude, I mean zero allocation, under the DCSO or any other special arrangement.”

He said the DCSO implementation has been hampered by the ‘willing buyer, willing seller’ policy

Idoko said a modular refinery like Opac couldn’t get crude, and it stopped production for months.

According to Idoko, local refineries have the capacity to produce more than their current output, blaming the lack of enough feedstock for the current output. “We have the capacity to produce far more than what we are producing now. The challenge has always been inadequate feedstock,” he stated.

Idoko stated that some modular refineries like OPAC produce about 10 per cent of their capacities, while some shut down due to a lack of crude oil.

“A good example, the OPAC refinery has a 10,000-barrel capacity. It produces just about 1,000, and it’s not consistent. Sometimes, the refinery is shut down for months because of the unavailability of crude. The Dangote refinery was recently producing at 60 per cent of its total capacity due to the unavailability of feedstock.”

Earlier this month, Dangote Petroleum Refinery & Petrochemicals also cleared the air on the crude oil supply being received from the Nigerian National Petroleum Company under the naira-for-crude arrangement, disclosing that it receives five cargoes of crude monthly which are paid for in naira.

However, it stated that this falls significantly short of the 13 cargoes required each month to meet domestic demand.

The refinery in a statement issued further explained that the shortfall of eight cargoes is being bought from other sources outside the country.

In addition, it stated that the NNPC cargoes are priced at international market rates plus a premium.

As a result, the company said it is compelled to source additional crude from local and international traders, procuring foreign exchange at prevailing open market rates to complete the purchases.

Further investigations revealed that International Oil Companies operating in Nigeria have been reluctant to prioritise domestic crude supply, largely due to better pricing and fewer regulatory constraints in the international market.

Experts say IOCs prefer exporting crude under long-term contracts denominated in dollars, rather than selling locally under conditions that may involve pricing benchmarks, currency risks, or policy uncertainties.

They added that disputes over pricing frameworks, particularly when crude is sold at a premium and third-party influence, have further complicated domestic supply arrangements.

Similarly, an alternative solution provided by the government through the naira-for-crude policy to allow domestic refineries to purchase crude oil in local currency, reduce pressure on foreign exchange, and ensure a steady feedstock supply hasn’t met expectations.

The policy introduced in October 2024 gained prominence with the ramp-up of refining capacity, particularly from the Dangote Refinery, and was expected to mark a turning point in Nigeria’s downstream sector.

Under the arrangement, refiners would pay for crude in naira, while the government would manage foreign exchange implications through the Nigerian National Petroleum Company Limited.

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However, the 2025 import figures suggest that the policy has not fully achieved its core objective.

This situation is driven by several structural challenges, including a mismatch between allocated crude and refinery demand, persistent pricing disagreements over benchmark terms, concerns among upstream producers about naira volatility, and existing forward sales and export commitments that limit the volume of crude available for domestic refining.

The NBS data further showed that Nigeria sourced its imported crude primarily from African countries such as Algeria, Angola while imports from the United States of America accounting for the largest share.

This trend reflects the growing integration of global crude markets, where refiners prioritise reliability and quality over geographic proximity.

Commenting, energy analysts have faulted the implementation of the Federal Government’s naira-for-crude policy, arguing that it has failed to significantly improve domestic crude supply or reduce fuel prices.

The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the policy has delivered little impact since its introduction in 2024, as most refineries continue to rely heavily on imported crude.

Speaking in a telephone interview with The PUNCH, he said, “For me, the naira-for-crude policy that was initiated in 2024 has not yielded any reasonable output because the Dangote refinery still sources about 65 to 70 per cent of its feedstock from abroad, while about 95 per cent of modular refineries also source their crude outside the naira-for-crude initiative.

“So, the initiative, for me, is not effective, and that is why we are still seeing a large inflow and importation of crude oil in 2025. In turn, prices at the depot and pump have not been different from when we were fully importing refined products.”

He noted that while the coming on stream of large-scale refining capacity has improved product availability, it has not translated into price relief for consumers.

“The only difference now is that we no longer have supply fears; there is availability of products. But in terms of pricing, I would say the naira-for-crude policy has not translated into lower prices at the depot or pump,” he added.

Jeremiah attributed this to the continued reliance on international pricing benchmarks, even for locally supplied crude.

“Dangote’s crude from the Nigerian National Petroleum Company is still priced internationally and benchmarked to Brent. So it is not as effective as the name implies. The refinery still has to pay based on international prices when converted,” he said.

He argued that to achieve meaningful price stability, the government may need to rethink its approach.

“For me, I feel that the subsidy removal in 2023 should be replaced with another form of subsidy, but this time targeted at refineries. The crude supplied to local refineries should be subsidised. That is the only way prices can be stabilised and Nigerians will feel the impact at the pump,” he stated.

He added that the current arrangement contradicts provisions of the Petroleum Industry Act, which prioritises domestic crude supply.

“The agreement should be revisited. The policy is not effective, and Nigerians are not supposed to be buying fuel at high prices, considering that we have crude and a giant refinery. Local refineries should not struggle to access crude at all,” he said.

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Similarly, a Professor of Energy, Dayo Ayoade, said structural issues in Nigeria’s upstream sector have made it difficult for policies like naira-for-crude to succeed in practice.

“We have deeply unreliable supply from NNPC, largely because the company forward-sold crude oil to secure loans for the government in the past,” he said.

“Also, for over 19 years while the Petroleum Industry Bill was being delayed, there was significant underinvestment in the upstream sector. When you combine this with government’s priority of earning foreign exchange and servicing debts, you will see that, in practice, initiatives like naira-for-crude are more on paper than reality.”

He explained that Nigeria’s current production levels are insufficient to meet both export obligations and domestic refining demand.

“NNPC must have crude oil that it can supply, but it doesn’t. By the time international oil companies take their allocations under joint ventures and production sharing contracts, very little is left,” he said.

“Take the 650,000 barrels per day Dangote refinery, for instance. It would require about 650,000 barrels daily to operate at full capacity. That is not feasible at the moment. That crude simply does not exist in available volumes right now.”

Ayoade further noted that crude importation is built into the operational model of modern refineries.

“We also need to understand that the configuration of the refinery requires a blend of different crude grades. Nigeria’s light sweet crude alone is not sufficient, so some level of importation is part of the refinery’s design and business plan,” he said.

On the outlook for 2026, he warned that the trend of crude importation by domestic refineries is likely to persist.

“This pattern will likely will continue in 2026 because issues like logistics bottlenecks, pipeline vandalism, oil theft, and delayed field development cannot be solved in a short time,” he said.

“As long as crude oil accounts for over 95 per cent of our foreign exchange earnings and the government prioritises exports, we will continue to see this pattern for a few more years.”

He added, “That is why I am always cautious when people talk about new refineries coming on stream. The real question is: where will the crude oil come from? That is the fundamental issue.”

Nigeria has long relied on imported refined petroleum products due to inadequate domestic refining capacity. However, recent investments in local refineries were expected to reverse this trend by boosting in-country processing of crude oil.

The Petroleum Industry Act introduced provisions aimed at ensuring a steady supply of crude to domestic refineries, including domestic crude supply obligations.

However, implementation challenges, legacy contractual commitments, and market realities have slowed progress, leaving refiners to navigate supply gaps through imports.

The N5.734tn crude import bill in 2025 now highlights a new phase in Nigeria’s oil sector paradox, where the challenge is no longer just refining capacity, but access to crude itself.

As the country pushes to maximise value from its hydrocarbon resources, the ability to align upstream production with downstream demand will remain critical to achieving true energy independence.

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FG unveils ‘fly now, pay later’ credit scheme for domestic flights

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The Federal Government has introduced a new consumer credit product, “Fly Now, Pay Later,” aimed at making domestic air travel more accessible to Nigerians.

The Nigerian Consumer Credit Corporation disclosed this in an announcement posted on its X handle on Tuesday, stating that the initiative would allow eligible customers to book local flights and repay the cost over time through structured financing.

According to CREDICORP, the scheme is designed to remove the upfront financial barrier that often delays important trips for many Nigerians.

“Through this initiative, eligible customers can book domestic flights today and repay the cost over time through structured financing, removing the upfront barrier that often delays important trips,” the statement read.

CREDICORP said the solution is being delivered in partnership with MyVisaro and Alert Microfinance Bank as part of efforts to expand access to responsible consumer credit.

To apply, the corporation urged interested individuals to visit visaro.ng and book a flight to any city in Nigeria.

 

FG unveils ‘fly now, pay later’ credit scheme for domestic flights

“At CREDICORP, we remain committed to expanding responsible consumer credit and enabling Nigerians live better now, including flying locally. Fly now. Pay later. Opportunity shouldn’t wait,” it added.

The corporation noted that the initiative aligns with its broader mandate to promote financial inclusion and improve access to essential services through innovative credit solutions.

The launch comes amid growing concerns over the rising cost of domestic air travel in Nigeria, with many citizens facing affordability challenges despite increasing demand for intra-country connectivity.

During the 2025 Yuletide period, one-way fares on some domestic routes rose by about.

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Airlines have attributed the high ticket prices to the rising cost of aviation fuel, foreign exchange constraints, and other operational expenses.

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