CNG is a good policy for transportation, but… — NAJA

The Nigeria Auto Journalists Association (NAJA) has called on President Bola Ahmed Tinubu to prioritise the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as part of urgent measures to curb rising petrol prices. The association made the appeal amid mounting concerns over the impact of global energy market volatility—driven by […]

The Nigeria Auto Journalists Association (NAJA) has called on President Bola Ahmed Tinubu to prioritise the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as part of urgent measures to curb rising petrol prices.

The association made the appeal amid mounting concerns over the impact of global energy market volatility—driven by tensions in the Middle East—on Nigeria’s already fragile fuel pricing structure.

NAJA’s position comes just days after the Federal Government unveiled plans to distribute 100,000 Compressed Natural Gas (CNG) conversion kits nationwide to promote alternative fuel usage and cushion the effects of rising petrol costs on motorists and commuters.

While acknowledging the initiative as a step in the right direction, NAJA maintained that the policy, though beneficial, cannot serve as a complete solution.

“CNG is a good policy for transportation, but it is not a silver bullet,” said NAJA Chairman, Theodore Opara. “The backbone of Nigeria’s fuel supply must still rest on efficient domestic refining supported by guaranteed crude supply.”

Opara stressed that the current reality—where the Dangote Refinery imports a significant portion of its crude—leaves it vulnerable to global supply shocks, including disruptions linked to geopolitical crises.

“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply locally, especially from the Nigerian National Petroleum Company Limited, it will strengthen Nigeria’s energy security and reduce exposure to international market volatility.”

He further advocated for a naira-based crude supply framework for domestic refineries, noting that such a move would ease pressure on foreign exchange demand and help stabilise the downstream petroleum sector.

Despite being Africa’s largest crude oil producer, Nigeria continues to rely heavily on imported refined petroleum products—a paradox that NAJA says must be urgently addressed.

“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will significantly reduce its vulnerability to external shocks. This will also support price stability in the domestic market,” Opara added.

NAJA added that a balanced approach—combining the promotion of alternative fuels like CNG with robust support for domestic refining—remains the most effective strategy to shield Nigerians from the impact of global oil market disruptions.