Nigeria’s Rising Oil Output Sparks Calls for Local Refinery Boost

Nigeria’s average daily crude oil output has reached about 1.8 million barrels, a development that domestic refining companies and labour groups say should help reduce high fuel costs.

Local refiners, led by the Crude Oil Refiners Association of Nigeria, welcomed the improved production figures but noted that only a small portion of the country’s crude is currently being supplied to Nigerian refineries. They pointed out that plans to increase allocations to major refining facilities, such as the Dangote plant, remain insufficient for full operations.

Refiners warned that without a consistent and reasonably priced supply of local crude, fuel prices for motorists and industrial users will not decrease as expected. They stressed that higher output should translate to better feedstock availability for refineries and relief at the petrol pump.

Organised labour echoed these concerns, emphasizing that the production increase needs to result in tangible benefits for consumers. Without stronger implementation of domestic supply rules and fair pricing, local refineries will continue to struggle to compete with imported products.