Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Senior Advocate of Nigeria and human rights lawyer, Femi Falana, has issued a direct challenge to the Federal Government, demanding that the 450,000 barrels of crude oil set aside daily for domestic consumption be redirected to local refineries. Falana argued that the move would significantly reduce the price of petrol, strengthen the naira, and end Nigeria's reliance on imported fuel. He made the call during an interview on Channels Television's Politics Today on Sunday, August 30, 2026, amid intensifying debates over the removal of fuel subsidies.
"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," Falana said.
The senior lawyer questioned why Nigeria continues to import petroleum products when it has both crude oil reserves and growing domestic refining capacity. He noted that fuel imports still account for about 43 per cent of local consumption, a figure he described as unacceptable. "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 said.
Falana insisted that the government should stop spending scarce foreign exchange on imported products that could be refined locally. "We can compel the government to stop the massive importation because it means a lot for the economy," he said. He argued that redirecting the domestic crude allocation to local refineries would enable the government to exercise greater control over fuel pricing while reducing dependence on imported petroleum products.
The human rights lawyer also took aim at economic policies influenced by the International Monetary Fund and the World Bank, particularly the devaluation of the naira. He maintained that an import-dependent economy would not benefit from devaluation, as it only increases the cost of goods. "An import-oriented economy will not gain from devaluation," he said. He added that there was no truly free market anywhere, 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 also linked the fuel import challenge to the broader economic hardship facing Nigerians, arguing that the increased revenue generated since the removal of the fuel subsidy has not translated into meaningful improvements in living standards. He noted that the Federal Government had previously budgeted approximately $10 billion annually for fuel imports, but the bulk of the savings, according to him, is now being directed toward debt servicing. "Now, the money earmarked for fuel importation by the government, $10 billion per annum, ought to have been saved, but the bulk of this money goes for servicing of debt. That's where the problem lies," he said.
The senior lawyer further called on 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 funds on paper. It is the duty of the Nigerian people now to demand accountability," he said.
Falana also urged the government to revive Nigeria's dormant public refineries while ensuring that available crude is channelled towards domestic refining. He maintained that redirecting the country's domestic crude allocation to local refineries remains one of the most effective steps towards lowering fuel costs, strengthening the naira, and reducing pressure on the economy. The Nigerian Upstream Petroleum Regulatory Commission reported in August that domestic refiners received 53.7 million barrels of crude and condensate in the second quarter of 2026, with the Dangote Refinery accounting for about 98 per cent of the volume eventually supplied to local refiners. Falana's call adds to the growing pressure on the Federal Government to fully utilise the country's refining capacity and end the cycle of fuel imports that has drained the nation's foreign reserves for decades.
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