The Lagos Chamber of Commerce and Industry (LCCI) has sought the supply of over 300,000 barrels of crude oil per day to the Dangote Refinery and other local refineries through a transparent, scalable naira-for-crude framework to reduce foreign exchange exposure and stabilise output and price.
The Chamber, which also urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to enforce domestic crude supply obligations under the Petroleum Industry Act, also called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to implement a clear, rules-based pricing framework that reflects verifiable cost structures while preventing potential abuse of market dominance without undermining deregulation.
The chamber believes that doing the above will stabilise output, reduce the pump price of petrol, which has risen to N1,367, causing cost pressures across transportation, food supply chains, and industrial production.
The Middle East crisis, which started on February 28 and the escalation of crude oil prices to about $112 per barrel, coupled with the fourth upward adjustment in Dangote Refinery’s gantry price to approximately ₦1,245 per litre, have affected Nigeria, forcing fresh inflationary pressures.
Director General of LCCI, Chinyere Almona, noted that the country should accelerate the operationalisation of other licensed and modular refineries to reduce concentration risks, while maintaining strategic imports as a short-term buffer to stabilise supply. Addressing key constraints such as FX volatility, logistics inefficiencies, and distribution bottlenecks remains critical to improving overall market efficiency.
Nigeria’s economy has faced heightened downside risks as rising global crude oil prices and sustained increases in domestic refinery costs push fuel prices toward ₦1,500 per litre, intensifying inflationary pressures across key sectors.
The LCCI noted that the persistent fuel affordability challenge reflects a deeper structural imbalance, as Nigeria’s daily petrol demand of over 50 to 53 million litres continues to exceed effective domestic refining capacity. This widening supply gap, it said, is amplifying price volatility and concentrating market power.
The Chamber emphasised that government intervention should prioritise strategic market stabilisation rather than price suppression. It recommended targeted and time-bound support for critical sectors such as transportation, agriculture, and small and medium-sized enterprises to cushion inflationary spillovers, while avoiding inefficient blanket subsidy regimes.
The LCCI further stressed the importance of exchange rate stability, noting that fuel pricing remains highly sensitive to foreign exchange fluctuations. It called for improved FX liquidity and stronger policy coordination to stabilise the naira, alongside clear and consistent policy signals to sustain investor confidence in the deregulated market framework.
Despite the apparent fiscal upside from higher crude prices, the Chamber observed that Nigeria’s gains remain constrained by production limitations and structural inefficiencies. The net impact, it warned, is negative, with rising energy costs driving cost-push inflation, weakening industrial competitiveness, and eroding household purchasing power.
Describing the current oil price shock as a stress test for Nigeria’s energy and economic architecture, the LCCI maintained that sustainable fuel price moderation would only be achieved through structural reforms that expand domestic supply, enhance competition, and improve transparency across the value chain.
Looking beyond immediate concerns, the Chamber urged the government to pursue a broader restructuring of the oil and gas sector to position Nigeria as a competitive alternative supplier to African, European, and Asian markets amid shifting global energy dynamics.
The Director General stated that with disciplined execution and strong public-private collaboration, Nigeria has the potential to convert current challenges into a platform for building a more resilient and self-sufficient energy ecosystem.
