As debates over the removal of fuel subsidies intensify, human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has asked the Federal Government to deploy the 450,000 barrels of crude oil it sets aside daily for domestic consumption to local refineries, saying the move could significantly reduce the price of petrol in the country.
Falana made the call during an interview on Channels Television’s Politics Today on Sunday night, where he questioned the continued importation of petrol despite the availability of crude oil and operating local refining capacity.
The senior lawyer said the government should particularly ensure that the crude allocated for domestic consumption is supplied to local refineries for processing, arguing that doing so would enable the government to have greater influence over the price of petrol.
“The country sets aside 450,000 barrels of crude oil for local consumption. We must ask the NNPC what has happened to the allocation. If this country earmarks 450,000 barrels per day, that is what we should be giving to Dangote to refine for our country. And at that level, the government can dictate the price,” he said.
Falana’s comments came as the presidential candidate of the African Democratic Congress, Vice President Atiku Abubakar, renewed discussions over the removal of the fuel subsidy.
Atiku said he would return the fuel subsidy by selling crude to local refineries at a reduced price.
Speaking further, the lawyer claimed that petrol imports currently account for about 43 per cent of local consumption, describing the situation as unacceptable given the country’s refining capacity..
“As of last week, up to 43 per cent of local consumption was imported. What is the excuse? The Dangote refinery and others are exporting fuel from this country,” he added.
Falana argued that Nigeria should stop spending scarce foreign exchange on importing products that could be refined locally, insisting that the 450,000bpd allocation should be properly accounted for. “We can compel the government to stop the massive importation because it means a lot for the economy,” he said.
The senior advocate also criticised the continued application of what he described as economic policies influenced by the International Monetary Fund and the World Bank, particularly the devaluation of the naira.
He maintained that the weakening of the naira was worsening the cost of imported products in an import-dependent economy, saying, “An import-oriented economy will not gain from devaluation.”
He further argued that there was no truly free market, saying governments across the world intervene in their economies to protect citizens. “There is no free market anywhere. It’s part of the fraud. Government intervenes in every country, including the advanced capitalist countries,” he said.
Falana said the government should also focus on reviving Nigeria’s dormant public refineries while ensuring that available crude is channelled towards domestic refining. He questioned why Nigeria continued to import petrol when local refineries were producing fuel for the domestic and export markets.
The lawyer also linked the petrol crisis to the wider economic hardship facing Nigerians, arguing that increased government revenue following the removal of the petrol subsidy had not translated into improved living conditions for citizens.
He noted that Nigeria’s crude oil production had risen from about 11.2 million barrels per day in July 2023 to about 1.67 million barrels per day currently, adding that the government should account for the benefits of the increased revenue.
Falana said the government had previously claimed to spend about $10bn annually on fuel imports, arguing that the money that should have been saved from the reduction in import dependence was instead being absorbed by debt servicing.
He therefore urged Nigerians to demand accountability from the Federal Government, state governments and local government councils over increased allocations following the removal of the subsidy.
“State governments are getting more money. The Federal Government is getting more money. Local governments are getting more money on paper. It is the duty of the Nigerian people now to demand accountability,” he said.
Falana also called for the implementation of the Supreme Court judgement on direct payment of statutory allocations to local governments, saying greater financial autonomy would enable citizens at the grassroots to demand accountability.
He said, “The government must enforce the judgement of the Supreme Court that funds, statutory allocations of local government, be paid directly to them so that at the grassroots level people can begin to demand proper governance in the country.
“We must stop importation. We must make available the 450,000 barrels of crude oil for our country. Because of the vital role of fuel PMS in the economy, I will insist, and again I’m going to perhaps do that in the next couple of days to find out from the NNPC what has happened to the 450,000-barrel allocation for local consumption daily. If we can locate those barrels of crude oil, then we can look for a refiner to refine them in the interest of the Nigerian people.”