Oil & Energy
Local Crude Shortage Crippling Nigerian Refineries – MAN
The inability of local refineries to secure enough Nigerian crude oil is threatening the country’s push for energy security and lower fuel costs, and setting off warning bells from manufacturers and business leaders, ARINZE NWAFOR reports
The Manufacturers Association of Nigeria has expressed concern over the inability of local refineries to access sufficient crude oil from within the country, warning that the situation is forcing Nigerian refiners to compete with international buyers for the nation’s crude and undermining the benefits of domestic refining.
The Director-General of MAN, Segun Ajayi-Kadir, made the remarks while reacting to reports that the Dangote Petroleum Refinery had purchased two cargoes of crude oil from the United Arab Emirates amid persistent domestic supply constraints.
Ajayi-Kadir described the development as evidence that domestic refiners were not getting adequate and reliable supplies of Nigerian crude, saying the situation was detrimental to the country’s industrialisation drive.
“That is obvious. The Dangote refinery’s decision to import crude oil from the United Arab Emirates amplifies the long-standing claims by domestic refiners that they are not receiving an adequate and reliable supply of local.
“The inability of our local refineries to access sufficient feedstock from Nigeria is distressing. For far too long, Nigerian crude refineries have had to compete with international buyers for our own (Nigerian) crude, often at international market prices plus additional logistics costs. This situation is not only economically inefficient, but it also erodes the advantage of local refining, which is to reduce import dependence, conserve foreign exchange, and create value addition within the country”, Ajayi-Kadir said.
The MAN DG urged the Federal Government to overhaul the domestic crude supply framework to ensure Nigerian refineries receive priority access to locally produced crude.
“This situation highlights the urgent need for a more structured and transparent domestic crude oil supply framework that prioritises local refineries. Therefore, MAN calls on the Federal Government, through the NNPCL and the NUPRC, to urgently ensure that a sufficient and consistent share of Nigeria’s crude production is allocated for domestic refining on fair commercial terms, particularly during this period of supply disruptions.
“At the same time, no effort should be spared in intensifying crude production. We should strengthen pipeline security, improve terminal reliability, and implement policies that effectively balance domestic refining needs with export commitments,” he said.
He stressed that Nigeria’s status as one of Africa’s largest crude oil producers should translate into stronger domestic value addition rather than dependence on imported feedstock.
“It is very concerning that a country as richly endowed with crude oil as Nigeria still finds itself in a situation where domestic refineries have to source crude from abroad to sustain their operations. Ultimately, the measure of success is not how much crude Nigeria produces, but how much value the country creates from that crude through domestic refining and how it speaks to our energy self-sufficiency. That is where the true economic benefits of our oil wealth lie,” Ajayi-Kadir added.
However, Ajayi-Kadir affirmed that sourcing crude from the UAE should be seen as a commercial decision rather than a diplomatic milestone.
“It could contribute positively to the broader commercial relationship between Nigeria and the UAE, but it should primarily be viewed as a commercial transaction rather than a diplomatic milestone. Refineries source crude based on technical specifications, availability, pricing, logistics and commercial terms,” he said.
Stakeholders push reforms to sustain Nigeria’s economic gains
According to MAN’s DG, while refiners should retain the flexibility to source crude oil internationally, Nigeria should prioritise strengthening its domestic supply to lower production costs, conserve foreign exchange, and improve energy security.
“Our priority should therefore be to strengthen the domestic crude supply framework, ensuring that local refiners have reliable and sufficient access to Nigerian crude. We therefore reiterate the call on the Federal Government and the relevant agencies to urgently reform the crude oil allocation to ensure that local refineries receive priority access to a commercially viable portion of Nigeria’s crude production,” Ajayi-Kadir said.
It was earlier reported that the President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, described Dangote refinery’s decision to import crude from the UAE as a commercial rather than patriotic decision.
Kupoluyi said the refinery was expected to source crude based on pricing, quality, availability and commercial considerations.
“It’s very straightforward. It’s a business. When you are running your business, you always look at opportunities. Opportunity drives business. We should look at how much the UAE suppliers are selling to Dangote. If the refinery has seen a better deal somewhere, we cannot say because of patriotism it must buy from Nigeria,” Kupoluyi said.
He added that refiners should remain free to source crude from any market provided such transactions align with Nigeria’s national interest, noting that the government should protect national interest while allowing businesses to make commercially sound decisions.
Report said the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, described Dangote refinery’s crude imports from the UAE as a business decision driven by domestic supply constraints rather than diplomacy.
“This is a business decision, and the Dangote refinery is very big. The NNPC cannot meet Dangote’s demands in terms of crude allocation, so it has to source crude from elsewhere that is commercially competitive. If the quality standard is good and the price is good, why not? It is purely a business decision; it is not a diplomatic thing,” Yusuf said.
He added that increased trade could further strengthen Nigeria-UAE economic relations, especially after both countries signed a trade protocol.
Yusuf also said the development highlighted the long-standing challenge of inadequate domestic crude supply to local refiners.
“Local crude has accounted for only about 30 per cent of Dangote Refinery’s feedstock from the beginning because domestic availability is not meeting demand. There are joint venture arrangements, previous forward sales and commercial terms that make it necessary to buy elsewhere. If the terms offered locally are not favourable, the refinery has to source crude abroad.
“It should be part of the business model of any refinery to source crude locally or internationally. There are countries with some of the world’s biggest refineries that do not produce crude at all. What matters is that the economics make sense. This is business, not politics or diplomacy”, Yusuf said
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Ondo State Governor, Lucky Aiyedatiwa has signed the State Electric Power Sector (Amendment) Law, 2026, aimed at strengthening regulation and attracting investment into electricity generation, transmission and distribution across the state.
The new legislation, passed by the State House of Assembly, amends Ondo State Electric Power Sector Law, 2020, and aligns the state’s electricity framework with recent constitutional and statutory developments, particularly the Electricity Act, 2023.
A statement issued by the Chief Press Secretary to the Governor, Prince Ebenezer Adeniyan, said a major provision of the law was the establishment of State Electricity Regulatory Commission (SERC), an independent body responsible for regulating electricity activities and standards in Ondo State.
It added that the commission would oversee tariffs, open access, franchises, third-party investments, mini-grids and renewable energy development, while also issuing licences and permits for electricity generation, transmission and distribution facilities.
“The law also provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to facilitate the effective operation and development of the state’s electricity market.
“Under the amended law, compulsory metering is required for both grid-connected and off-grid electricity consumers. Electricity sellers are mandated to provide appropriate meters, while consumers will maintain direct service and payment relationships with their respective electricity providers.
“The legislation also provides legal protection for electricity infrastructure financed by communities, associations and private individuals. Transformers, distribution lines and other facilities connected to the public distribution network are protected against arbitrary interference,” the statement said.
It stated further that the law creates the offence of “Electricity Infrastructure Expansion Sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid.
According to the statement, first conviction attracts a N2 million fine, as well as an additional N25,000 for every day the refusal continues after written notice from the regulatory authority.
The Nigeria Liquified Natural Gas (NLNG) has launched the Research and Innovation Centre for Computer and Electrical Engineering (RICCEE), in the Rivers State University, a major research and development initiative jointly promoted by Nigeria LNG Limited (NLNG) and the Nigerian Content Development and Monitoring Board (NCDMB).
The project, valued at US$6.2 million, is being implemented under NLNG’s Human Capacity Development (HCD) Plan and forms part of the NCDMB Human Capital Development Institutional Strengthening Programme.
The centre is designed to strengthen the university’s capacity for advanced, industry-relevant research, specialised training, technology development and practical problem-solving in computer, electrical and electronics engineering.
The initiative is expected to promote industry-focused research and develop innovative solutions to operational challenges confronting Nigeria’s energy and industrial sectors.
The facility would be developed on approximately 9,336 square metres of land within Rivers State University and will comprise a three-storey building of more than 9,000 square metres, containing 18 specialised laboratories.
The laboratories would include facilities for Electronics and Signal Processing, Robotics and Embedded Systems, Software Engineering and Digital Forensics and Cybersecurity as well as provide offices, storage areas and technical administration spaces to support research, teaching and equipment management.
The building would incorporate sustainability features, including solar energy provisions, energy-efficient lighting and environmentally responsible systems designed to reduce operating costs and support reliable research activities.
A US$1.2 million Professorial Chair would also be established as part of the initiative to support advanced research, academic leadership, and industry collaboration.
Speaking at the groundbreaking ceremony, last Thursday, the Managing Director and Chief Executive Officer of NLNG, Adeleye Falade, who was represented by Dr Sophia Horsfall, General Manager, External Relations and Sustainable Development of NLNG, described the new engineering facility as more than infrastructure, noting that it would serve as a hub for equipping students, lecturers and researchers with the tools required for practical learning, applied research and innovation in computer, electrical and electronics engineering.
Represented by the General Manager, External Relations and Sustainable Development, NLNG, Sophia Horsfall, Falade stated that the centre would strengthen collaboration between academia and industry and ensure that research outcomes from Rivers State University directly address operational and societal challenges facing Nigeria.
He explained that the project is aimed at improving the capacity of institutions of learning through upgraded infrastructure, modern research facilities, technical equipment and industry-aligned training programmes that extend human capital development beyond the classroom.
According to him, the centre would help bridge the gap between academic knowledge and practical industry requirements by enabling researchers and professionals to collaborate on innovations with commercial and developmental relevance.
Falade emphasised that while infrastructure is important, people remain the greatest investment, noting that education delivers the highest return by building confidence, competence and capacity for national development.
He further announced that NLNG’s Research and Development Implementation Consultancy would be based at the centre upon completion adding that the consultancy would support the development of a robust research and development framework in line with the Nigerian Oil and Gas Industry Content Development Act, 2010 and facilitate commercially viable, industry-relevant research in partnership with selected tertiary institutions.
Falade commended the Nigerian Content Development and Monitoring Board (NCDMB) for its leadership in bringing industry and academia together and reaffirmed NLNG’s commitment to sustainable human capital development and indigenous technological advancement.
On his part, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, who was represented by the Director, Capacity Building Directorate, Engr. Abayomi Bamidele, described the groundbreaking ceremony as a significant milestone in the implementation of the Board’s Human Capital Development objectives.
Ogbe confirmed that NCDMB is fully aligned with NLNG in the implementation of the RICCEE project and would work closely with all stakeholders to ensure its successful execution and completion, commending the NLNG for its commitment to the project.
He explained that the project forms part of NCDMB’s Institutional Strengthening Programme, which seeks to establish enduring partnerships with institutions of higher learning by providing infrastructure that enhances teaching, research, innovation and practical skills development.
He challenged the centre to become a vibrant hub of discovery, creativity, enterprise and technological advancement, where students would be inspired to innovate, researchers would develop solutions to real-world challenges and industry would find reliable partners for research and development.
He also commended NLNG for its commitment to the project and praised the Governing Council, Vice-Chancellor and management of Rivers State University for their dedication to academic ex.
In his address, the Vice-Chancellor of Rivers State University, Prof. Isaac Zeb-Obipi, described the occasion as a historic milestone for the institution and reaffirmed the university’s vision of becoming a leading institution focused on solving practical societal problems through research, innovation and human capacity development.
Prof. Zeb-Obipi stated that the RICCEE project aligns with the university’s 2026–2030 Strategic Development Plan, which prioritises the improvement of academic programmes and the strengthening of research collaboration, innovation and entrepreneurship.
The House of Representatives Committee on South-South Development Commission has demanded urgent and concrete measures to resolve the prolonged gas seepage in Bille Community, Rivers State, and the oil spill affecting Odidi Federated Community in Delta State.
Chairman of the Committee, Hon. Julius Gbabojor Pondi, made the demand during an urgent Stakeholders’ Engagement on the Bille gas seepage and a Legislative Hearing on the Odidi oil spill, in Abuja, last week.
Pondi said the two incidents had exposed host communities in the oil-producing region to prolonged environmental hazards while responses from relevant authorities had yet to produce satisfactory and timely resolutions.
The Committee’s intervention comes amid growing concerns over environmental degradation in the Niger Delta, where communities dependent largely on fishing, farming and other natural-resource-based livelihoods continue to contend with the consequences of oil and gas activities.
Pondi said the Committee’s concern over the Bille incident was heightened following its engagement with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) on July 30, 2026.
He said the Committee was deeply concerned that the gas seepage had persisted for approximately nine months without a clear end in sight.
“The implications are serious. Beyond the potential risks to health, safety and the environment, the incident has imposed severe economic hardship on the people of Bille,” Pondi said.
He noted that Bille, a predominantly fishing community, had suffered consequences affecting livelihoods, food security, household income, education and the general well-being of families.
“It is unacceptable for an incident of this magnitude to persist for so long without a clear, time-bound and effective resolution strategy,” he stated.
According to Pondi, the engagement was intended to establish the facts surrounding the incident, assess the response so far, identify obstacles and agree on practical, measurable and time-bound actions.
He said the Committee expected comprehensive briefings from the operating company, NUPRC, NOSDRA and other relevant agencies on the cause, extent and current status of the seepage, while representatives of Bille Community would be given an opportunity to present their concerns and the relief and interventions required.
“Most importantly, we want to move from prolonged discussion to concrete action and lasting resolution,” he said.
Giving an account of the agency’s technical findings, a Director of NOSDRA, Dr Yusuf Rigasa, said investigations had established what he described as “multi-point subsurface gas bubbling” at several locations in Bille.
He stated that gas bubbling had been detected around the premises of the Government Primary and Secondary School, as well as in waterways and certain mangrove areas.
According to him, NOSDRA conducted an air-quality assessment on December 6, 2025, across 19 stations and recorded elevated levels of hydrogen sulphide, methane, volatile organic compounds and carbon dioxide.
Rigasa explained that hydrogen sulphide has a characteristic rotten-egg smell, while methane is highly flammable and potentially explosive.
The concentrations recorded, he said, exceeded applicable regulatory thresholds.
Rigasa stated that the agency’s reference laboratory also analysed samples collected on December 16, 2025, and found elevated levels of total petroleum hydrocarbons in groundwater, surface water and sediment samples adding that
findings indicated that soil, surface water and groundwater in parts of Bille had been affected by pollution.
What we can confirm for the House is that the air, the groundwater, the surface water and the sediment in the swampy areas in that village, they are all polluted,” he said.
The NOSDRA official, however, said the agency had not established that the gas was from a hydrocarbon source.
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