| dc.description.abstract | In 2025, Nigeria recorded an unprecedented surge in crude oil imports from the United States, bringing in 42.13 million barrels within the first ten months, a 167% increase compared to the same period in 2024 (Tunji, 2026). This alarming trend brings to the fore persistent structural weaknesses in Nigeria’s domestic crude supply system, which continue to constrain refinery operations, undermine foreign exchange stability, and threaten energy security. Despite Africa’s largest refining expansion, including facilities such as the Dangote Petroleum Refinery, local operators received less than 55% of requested crude volumes, even as national production exceeded 1.6 million barrels per day.
The crisis is compounded by preferential crude exports, weak enforcement of the Domestic Crude Supply Obligation (DCSO), and pricing, logistics, and contractual challenges. As a result, Nigeria risks entrenching a paradoxical model where increasing domestic refining capacity coexists with rising dependence on imported crude oil.
Unchecked reliance on imports weakens the objectives of the Petroleum Industry Act (PIA) 2021, exposes the economy to foreign exchange volatility, weakens domestic value addition, and elevates long-term fiscal risks. Legislative intervention is therefore crucial to recalibrate policy, enforce accountability, and secure domestic energy resources for national development. The National Assembly is kindly urged to:
1. Hold a joint public hearing through the Senate and House Committees on Petroleum Resources (Upstream) to examine continued dependence on imported crude in 2026 and its implications for domestic refining, FX stability, and PIA implementation, inviting key stakeholders including the Minister of State for Petroleum Resources (Oil), NUPRC, NNPC Ltd, indigenous refinery operators, and upstream producers.
2. Mandate a comprehensive audit by NUPRC and NNPC Ltd covering production, domestic allocations, exports, refinery demand, and supply shortfalls for 2024–2026 to enable evidence-based legislative oversight.
3. Consider legislative or oversight reforms to strengthen enforcement of the DCSO, improve pricing transparency, and introduce proportionate sanctions for non compliance by crude producers.
4. Encourage policy alignment across petroleum, fiscal, and foreign exchange frameworks to prioritise domestic crude utilisation, reduce FX exposure, and promote industrial value addition. Addressing these challenges will reduce reliance on imports, enhance domestic refining efficiency, stabilise foreign exchange, and unlock the full developmental potential of Nigeria’s petroleum resources. Timely, decisive action by the National Assembly in 2026 is pivotal to transforming Nigeria’s crude oil sector into a driver of economic growth, energy security, and national industrialisation. | en_US |
