NAPS CONDEMNS SALE OF NIGERIAN CRUDE TO LOCAL REFINERIES AT INTERNATIONAL BENCHMARK PRICES; CALLS ON FEDERAL GOVERNMENT TO PRIORITIZE LOCAL REFINING, ADDRESS FUEL PRICE HIKE, AND PROTECT NIGERIA’S ENERGY SOVEREIGNTY — ISSUES A 7 WORKING-DAY ULTIMATUM

 

Distinguished members of the press, fellow Nigerians, and the resilient students of our great nation,

The National Association of Polytechnic Students (NAPS), under the leadership of Comrade Eshiofune Paul Oghayan, addresses the nation today following the persistent hike in the prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and other petroleum products which continue to impose severe economic hardship on Nigerians.

For several days, citizens across the country have raised a fundamental and legitimate concern: how can a nation abundantly blessed with crude oil resources continue to experience rising fuel prices despite possessing one of the largest refineries in the world within its borders?

Recent media engagements with the Managing Director/CEO of the Dangote Petroleum Refinery have now provided important clarity regarding the realities shaping current fuel pricing in Nigeria.

THE REALITY BEHIND THE FUEL PRICE HIKE

Available information confirms that the current price increases are largely influenced by global oil market volatility and geopolitical disruptions affecting international supply chains.

Global crude oil prices recently surged from the mid-$60 range to nearly $120 per barrel, driven by international conflicts that disrupted supply routes, increased insurance risks, and elevated shipping costs worldwide. Freight expenses alone reportedly increased from approximately $800,000 to about $3.5 million per shipment, significantly raising refining and distribution costs.

These developments demonstrate that the global oil market is presently operating under extreme uncertainty.

However, the most revealing fact is that even under Nigeria’s crude-for-naira framework, local refineries still purchase Nigerian crude oil at international benchmark prices, without any domestic pricing advantage.

Further disclosures indicate that the Dangote Refinery currently receives only about 28% of its crude oil supply from the Nigerian National Petroleum Company Limited (NNPC), with the highest allocation recorded so far standing at approximately 32%. This limited domestic supply compels the refinery to source the remaining crude requirements from international traders and middlemen at prevailing global market rates.

Despite deliberate efforts by the refinery to utilize as much Nigerian crude as possible including significantly reducing crude imports; inadequate local crude allocation continues to expose domestic refining operations to external market forces and additional transactional costs.

The implication is clear:

Nigeria exports crude oil yet prices refined fuel according to international market realities.

This remains the painful paradox confronting Nigerians today.

When global oil prices rise, petrol prices increase globally, and because local refiners must buy crude at international rates while also facing higher freight, insurance, financing, and foreign exchange costs, fuel prices within Nigeria automatically rise despite local refining.

LOCAL REFINING MUST DELIVER LOCAL BENEFITS

NAPS maintains that domestic refining should translate into national economic protection and price stability, not merely local processing under global pricing pressures.

The Dangote Refinery, operating at a nameplate capacity of approximately 650,000 barrels per day, with potential expansion to about 700,000 barrels daily, has demonstrated the capacity to meet Nigeria’s fuel demand and strengthen regional supply.

Yet, the full national benefit of this strategic investment cannot be realized when domestic refineries operate without supportive national pricing frameworks and adequate crude supply from within the country.

A country seeking energy security cannot treat its local refiners exactly like foreign buyers in international markets.

Selling Nigerian crude to Nigerian refineries strictly at volatile global benchmark prices while also limiting domestic crude allocation undermines the very objective of establishing domestic refining capacity.

POLICY CONTRADICTIONS AND THE SUSPENSION OF THE 15% IMPORT TARIFF

NAPS further expresses deep concern over the Federal Government’s suspension of the 15% import tariff on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) a policy originally introduced to encourage local refining and reduce dependence on fuel importation.

The initial approval of the tariff by President Bola Ahmed Tinubu, GCFR, represented a progressive reform aligned with economic diversification, local content promotion, and energy independence.

Its suspension now sends conflicting signals to investors who committed billions of dollars toward Nigeria’s refining sector, particularly at a time when Africa’s largest single-train refinery is operational.

Policies that favour importation over domestic production weaken investor confidence and slow Nigeria’s transition toward industrial self-reliance.

Supporting local refineries is not an economic favour it is a matter of national sovereignty, job creation, foreign exchange stability, and long-term economic resilience.

THE WAY FORWARD

The National Association of Polytechnic Students therefore calls on the Federal Government to immediately:

1. Allocate sufficient crude oil supply to local refineries, especially the Dangote Refinery.

2. Establish a domestic crude pricing framework that prioritizes national economic stability.

3. Reinstate the 15% import tariff to protect domestic refining investments.

4. Develop a comprehensive national energy security strategy capable of insulating Nigerians from global oil shocks.

5. Gradually eliminate Nigeria’s dependence on fuel importation now that local refining capacity exists.

As the literary icon Chinua Achebe reminds us:

“When the rhythm of the drumbeat changes, the dancers must also adjust their steps.”

Nigeria cannot pursue reform while maintaining policies that weaken its own industrial foundation.

We cannot own the orchard and yet continue to eat unripe fruits.

7 WORKING-DAY ULTIMATUM

In view of the growing economic hardship facing Nigerians, NAPS hereby issues a 7 working-day ultimatum to the Federal Government to address these structural issues and implement policies that will stabilize fuel pricing and protect citizens from further economic strain.

Failure to act within this period will compel Nigerian students to mobilize lawful and peaceful nationwide civic actions, including strategic demonstrations across key national corridors, airport routes, and critical government regulatory institutions within the Federal Capital Territory and other strategic states.

Nigerian students have historically stood at the forefront of national progress from the struggle for independence to the defense of democracy and we will not remain silent when policies threaten the economic future of our generation.

We did not inherit silence; we inherited courage.

CONCLUSION

This is a defining moment in Nigeria’s economic journey.

The nation must move decisively from import dependence to productive sovereignty, from vulnerability to stability, and from policy inconsistency to strategic national interest.

Nigeria’s energy resources must first serve Nigerians.

History will judge whether this moment strengthened our industrial future or weakened it.

Signed:

Comr. Eshiofune Paul Oghayan, GCNPS (SHOPRITE)

President

National Association of Polytechnic Students (NAPS)