The Nigeria Auto Journalists Association (NAJA has urged Federal government to strengthen local refinery capacity through reliable crude supply.
The NAJA Chairman, Theodore Opara, made the appeal in a statement in Lagos.
Opara noted that strengthening local refineries particularly the Dangote refinery would offer a more sustainable solution to the country’s fuel pricing challenges.
He added that it would serve as an urgent measure to mitigate the rising cost of petrol linked to the ongoing crisis in the Middle East.
The association made the appeal amid growing concerns over the impact of global energy market volatility on Nigeria’s fuel prices, which had been under pressure following heightened geopolitical tensions in the region.
“NAJA’s position comes only days after the federal government announced plans to distribute 100,000 Compressed Natural Gas (CNG) conversion kits across the country.
“The initiative is aimed at easing the burden of rising petrol costs on motorists and commuters by encouraging the adoption of alternative fuel sources.
“The CNG programme is a commendable step,” he said.
Opara urged the federal government to implement policies that would enable domestic refineries to access crude oil directly from the Nigerian National Petroleum Company Limited (NNPC) in naira.
According to Opara, the current arrangement where the Dangote Refinery imports a significant portion of its crude makes it vulnerable to fluctuations in the global oil market.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East.
“If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks,” he said.
The NAJA chairman noted that Nigeria, despite being Africa’s largest crude oil producer, still relied heavily on imported refined petroleum products, a situation that continued to expose the economy to external price volatility.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he explained.
He noted that while the CNG programme was beneficial in the medium term, ensuring that refineries within Nigeria operate at optimal capacity would have a more immediate impact on petrol pricing.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” Opara said.
Industry observers argue that direct crude allocation to local refineries could also reduce pressure on the naira and help stabilise the domestic fuel market, particularly during periods of global supply disruptions.
NAJA maintained that combining the CNG initiative with strong support for domestic refining would create a balanced strategy capable of protecting Nigerian motorists from the effects of international oil market volatility.
