NLC urges FG to increase crude supply to domestic refineries

The Nigeria Labour Congress (NLC) has called on the Federal Government to increase the supply of crude oil to domestic refineries in naira as petrol prices rise to about ₦1,430 per litre in some major cities.

The demand was contained in a statement issued on Wednesday by NLC President, Joe Ajaero.

The NLC called for urgent measures to cushion workers and households from the latest increase in petrol prices.

Checks by NewsDirect revealed that petrol prices this week have surged as high as N1500 and N1,4350 in many locations across the country.

The NLC President has however called for reasonable wage awards for workers and an expansion of Nigeria’s petroleum storage capacity, arguing that the measures would help reduce the impact of international oil-market shocks on domestic consumers.

The labour leader said the latest petrol price increase was partly linked to renewed conflict in the Gulf, but argued that Nigeria’s position as an oil-producing country with growing domestic refining capacity should provide some protection against disruptions in the international market.

He said sufficient crude should be supplied to local refineries in naira to support domestic refining, create jobs and strengthen energy security.

Ajaero also criticised the continued importation of crude by local refineries, describing the situation as unreasonable given Nigeria’s status as a crude-producing country and its investments in domestic refining capacity.

The NLC’s position comes against the backdrop of continuing efforts to improve crude supply to Nigerian refineries.

Data from the Nigerian Upstream Petroleum Regulatory Commission showed that 53.7 million barrels of crude oil and condensate were supplied to local refineries in the second quarter of 2026, representing a significant improvement from the 28.5 million barrels actually delivered in the first quarter.

However, refinery owners have said the improvement in physical deliveries has not completely resolved the feedstock problem.

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has identified crude pricing, transportation, evacuation infrastructure, crude quality, financing and payment arrangements as factors affecting the ability of refiners to obtain domestic crude on commercially sustainable terms.

The association has also backed the Naira-for-Crude initiative and called for a predictable domestic crude pricing framework that takes account of delivery points and local logistics costs.

Meanwhile, the NLC said the government should consider using increased earnings from crude sales to cushion households from the effect of higher petrol prices.

Ajaero claimed that crude was currently trading $35 to $40 per barrel above the benchmark used in the Federal Government’s budget and argued that the additional revenue could provide room for emergency support.

The claim was presented by the NLC as part of its case for government intervention and has not been independently established in the statement.

The labour centre also called for the expansion of national petroleum storage capacity, saying larger reserves would provide a buffer during periods of international supply disruption.

The NLC’s demands come as Nigeria continues to navigate the transition from petroleum-product import dependence towards greater domestic refining, while local refiners seek more predictable access to crude feedstock.