Refiners, NLC Demand More Crude, Lower Fuel Prices as Output Hits 1.8mbpd
Nigeria’s crude oil production has risen to about 1.8 million barrels per day (mbpd), prompting local refiners and organised labour to renew calls for increased crude supply to domestic refineries and lower fuel prices.
The Crude Oil Refiners Association of Nigeria (CORAN) spokesperson, Eche Idoko, said refiners would intensify demands for more feedstock.
He noted that while the NNPC plans to raise crude cargoes to the Dangote Refinery from five to seven daily, this remains far below the 14 cargoes required.
Idoko stressed that effective implementation of the Domestic Crude Supply Obligation (DCSO) is critical, but pricing challenges have hindered refineries from lifting cargoes.
“Seven out of 14 is still a far cry from what is available,” he said.
He explained that consistent crude supply would improve refinery profitability and government revenues, but modular refineries cannot break even unless pricing becomes more favourable.
“If the oil producers give us feedstock, we will make gains. That’s how good the refining business is,” Idoko added.
The NUPRC confirmed the production increase, saying output rose from 1.48mbpd in February to 1.84mbpd in March, with expectations of hitting 2mbpd.
Finance Minister Wale Edun commended the improvement, calling it “fantastic news” aligned with President Tinubu’s mandate.
Meanwhile, the Nigeria Labour Congress (NLC) said higher production should translate into more crude for local refineries and lower pump prices.
A senior official warned that failure to achieve this would expose inefficiencies in economic management.
Labour also raised concerns about transparency, noting Nigeria’s crude production is not fully metered at export terminals, making it difficult to verify actual output.
“We don’t actually know what we produce on a daily basis,” the official said.
The NLC argued that with oil prices above $100 per barrel, far higher than the budget benchmark of $64, Nigeria should benefit from windfall revenues.
But it warned that unless increased production leads to stronger regulation, improved refining, and consumer price relief, citizens may not feel any positive impact.
