By Joy Baba-Yesufu
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised alarms over the diversion of 500,000 barrels per day (bpd) of crude oil intended for local refineries, alleging that producers prioritize quick profits over national refining capacities.
In a statement by Publicity Secretary Joseph Obele, PETROAN described the situation as rampant racketeering and emphasized that the exportation of crude meant for domestic processing has significantly neglected local refineries. “This scheme prioritizes foreign exchange earnings at the expense of developing local refining,” Obele stated.
PETROAN’s National President, Billy Gillis-Harry, urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take decisive action against those defying regulations, stressing that local refining would enhance the petrochemical sector, reduce income disparities, and shift Nigeria from a raw material supplier to a value-added product provider.
At a recent stakeholders meeting, tensions surfaced as both producers and refiners blamed each other for supply inconsistencies. While oil producers pointed to refiners’ failure to meet commercial terms, refiners contended that producers were redirecting crude supplies to international markets instead of supporting domestic needs.
The challenges faced by the Dangote refinery, particularly its prolonged struggle to secure crude supplies, have highlighted this crisis. Dangote Group President Alhaji Aliko Dangote accused international oil companies of neglecting local efforts in favor of exports to Asia.
In response to these ongoing issues, President Bola Tinubu has mandated that crude allocated for domestic use be directed to local refineries, including Dangote’s. PETROAN commended the NUPRC for enacting a ban on exporting crude designated for local refining and expressed hope that these measures would facilitate a resurgence in local refining capacity and lessen reliance on refined product imports.
PETROAN highlighted that many refineries have fallen into disuse as a direct result of oil producers neglecting their domestic supply obligations. The association’s focus remains on rectifying these supply chains to enhance the local industry’s competitiveness and sustainability.The commission also called on telecom operators to allocate the additional revenue generated from the tariff increase towards infrastructure development and enhanced service delivery. It emphasised the need for clear mechanisms to monitor the proper utilisation of these funds for the benefit of consumers.
“Operators must clearly communicate the rationale for the tariff adjustments to consumers, ensuring they are fully informed about how these changes align with efforts to improve service delivery and infrastructure,” it added.
