Dangote Refinery Debate Deepens as Don Seeks Policy Shift on Fuel Prices
Debates over the role of the Dangote Refinery in Nigeria’s rising fuel prices have intensified, as a Professor of Political Science at the University of Maiduguri, Ibrahim Umara, called for urgent policy reforms to ease the burden on citizens.
Speaking amid growing concerns over the recent surge in petroleum prices, Prof. Umara described the government’s current approach as inadequate, noting that despite Nigeria’s daily production of over two million barrels of crude oil, citizens continue to face high fuel costs.
“Nigeria is a major crude oil producer, yet millions of Nigerians are not benefiting from affordable fuel. The wealth has not translated to relief at the pump,” he said.
The don highlighted the operational dynamics of the Dangote Refinery, owned by Alhaji Aliko Dangote, noting that the facility sources only about 30 per cent of its crude oil locally, while about 70 per cent is procured from international markets.
According to him, this dependence on imported crude exposes the refinery to global price fluctuations, which ultimately impacts domestic fuel prices.
He also cited geopolitical tensions over US-Israel attacks on Iran and the gulf crises as contributing factors to global oil price volatility, but stressed that Nigeria should adopt policies to shield its citizens from external shocks.
Prof. Umara proposed a strategic agreement between the government and local refineries to ensure that a fixed portion of Nigeria’s crude oil production is supplied domestically at negotiated or controlled rates.
He said such a move would stabilise fuel prices, reduce reliance on international markets, and provide relief for ordinary Nigerians.
The professor, however, cautioned against blaming refinery operators for the situation, noting that market realities must be taken into account.
“No business can buy crude at high international prices, refine it, and sell locally without covering costs and margins,” he stated.
With fuel prices continuing to rise, stakeholders have renewed calls for stronger government intervention and deeper collaboration with local refineries.
Analysts warn that without decisive action, the disconnect between Nigeria’s oil wealth and the economic realities faced by its citizens may continue to widen.