A development economist, Prof. Ken Ife, has urged the Federal Government to prioritize the supply of crude oil to the Dangote Refinery instead of exporting large volumes to the international market.
Prof. Ife made this call while speaking on Nigeria’s growing need for energy independence and economic stability. According to him, channeling more crude oil to local refineries will significantly reduce the country’s reliance on imported petroleum products.
He stressed that the Dangote Refinery, with a processing capacity of about 650,000 barrels per day, remains a critical national asset capable of transforming Nigeria’s downstream oil sector if adequately supplied.
“We cannot continue exporting crude and importing refined products at higher costs. It is economically unsustainable,” he said.
The economist explained that prioritizing local refining would help stabilize fuel prices, reduce pressure on foreign exchange, and strengthen the naira. He added that it would also shield Nigerians from fluctuations in global oil prices.
Industry observers note that despite its massive capacity, the Dangote Refinery has faced challenges in securing consistent crude supply, which affects its ability to operate at full capacity.
Experts believe that if the Federal Government redirects more crude to domestic refineries, Nigeria could:
* Cut down fuel importation
* Create more local jobs
* Improve energy security
* Boost economic growth
However, stakeholders also point out that existing export commitments and international pricing structures may pose challenges to fully implementing this shift.
As Nigeria continues to seek solutions to its fuel and foreign exchange challenges, calls for strengthening local refining are becoming louder across economic and policy circles.
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