The Trade Union Congress (TUC) has urged the federal government to allocate a minimum of 60 per cent of excess crude oil revenue to subsidise crude feedstock for domestic refineries. The proposal includes supporting facilities such as the Dangote Refinery, with the aim of lowering petrol prices and stabilising fuel supply. TUC argues that redirecting excess crude revenue in this way would reduce dependence on imported refined petroleum products. The union stated that local refining at subsidised rates could significantly cut costs and ease pressure on consumers facing high pump prices. No specific timeline or implementation framework was provided in the proposal.
TUC made the recommendation amid ongoing public concern over fuel affordability following the removal of fuel subsidies in 2023. The union emphasized that Nigeria's continued reliance on imported refined petrol exposes the economy to global market shocks and exchange rate volatility. It called for urgent policy action to strengthen local refining capacity.
The TUC's push for a crude subsidy to feed local refineries puts a spotlight on the unresolved contradiction in Nigeria's energy policy—claiming to have deregulated fuel markets while still being deeply entangled in resource allocation. By naming a specific threshold—60 per cent of excess crude revenue—the union isn't just making a symbolic demand; it's exposing how arbitrary the management of windfall oil incomes has been since the 2023 subsidy removal.
Nigeria still imports most of its refined petrol despite having refineries, including the new Dangote facility, that remain underutilized. The TUC's proposal highlights a deeper dysfunction: the absence of a coherent feedstock supply policy. With crude oil prices fluctuating and the naira under pressure, relying on imports keeps fuel prices vulnerable to external shocks. The government's silence on structured support for domestic refining suggests a lack of strategic direction, even as citizens bear the cost.
For millions of Nigerians, especially low-income earners and small businesses dependent on generators and transport, this policy gap translates into persistent high operating costs. Stable local refining could reduce fuel prices over time, but only if the state moves beyond ad hoc interventions.
This is not an isolated issue—it reflects a recurring pattern where Nigeria extracts oil wealth but fails to convert it into downstream industrial advantage.
