By Blaise Udunze
For months, Nigerians have argued over the rising cost of petrol, with many quick to blame the Dangote Refinery.
Allegations of monopoly and price manipulation have dominated public discourse. But this focus misses the bigger picture.
Nigeria’s energy crisis goes far beyond one refinery. It is rooted in debt, global financial pressures, and policy contradictions.
In 2024, the Federal Government introduced the Naira-for-Crude policy, allowing local refineries to pay for crude in naira. The move was seen as a step toward reducing dependence on foreign exchange. However, its impact has been limited.
Despite being a major oil producer, Nigeria has struggled to supply crude to its own refineries. Instead, much of the oil is sold abroad for dollars, which are then used to service the country’s rising debt. With public debt nearing ₦200 trillion, repayment obligations have taken priority over local industrial needs.
This has created a troubling cycle. Nigeria exports crude, earns dollars, and uses those dollars to pay creditors. Meanwhile, domestic refineries are left short of supply.
The Dangote Refinery, built to end fuel importation, now relies heavily on imported crude. This contradiction highlights the deeper structural issues in the system.
Efforts to address the imbalance have yielded little progress. A lawsuit filed by Dangote Industries against the NNPC was withdrawn without explanation, raising concerns about transparency and accountability.
Global events have further complicated the situation. The disruption of oil supply routes in 2026 increased Nigeria’s importance as a regional energy supplier. Yet, this has also brought increased international scrutiny.
The reality is clear. Nigeria’s energy challenges are not just local—they are tied to global financial systems and debt obligations.
Blaming Dangote may be convenient, but it does not solve the problem. The real issue lies in a system where debt repayment takes precedence over national development.
Until this is addressed, Nigerians will continue to feel the impact at the pump.
