OPEC Tells Nigeria to Stop Crude Exports

The Chairman of the OPEC Board of Governors for 2025, Mr. Adeyemi-Bero, has urged Nigerian oil and gas stakeholders to prioritise domestic refining and value addition rather than continuing the long-standing practice of exporting crude oil. Speaking at the Nigerian Association of Petroleum Explorationists (NAPE) Pre-Conference Workshop in Lagos, the First Exploration & Petroleum Development Company CEO stressed that Nigeria’s economic future depends on retaining value derived from its natural resources.

Adeyemi-Bero observed that for over four decades, Nigeria has largely acted as a supplier of raw crude to foreign refineries, missing the opportunity to industrialise its economy through local processing. He argued that international oil companies merely took advantage of Nigeria’s export dependence to feed their own industries, and that the responsibility now lies with Nigerians to change course.

According to him, the ongoing operations of the Dangote Refinery demonstrate how domestic refining can strengthen foreign exchange stability and support national economic growth. He noted that if the refinery had not been operational, the government may have been compelled to restore fuel subsidies due to supply shortages following the subsidy removal decision.

Citing examples from Saudi Arabia, the United Arab Emirates, Qatar, Malaysia, and Brazil, he explained that successful petroleum-producing economies focus on expanding their value chains at home. He acknowledged that while there was controversy around the Dangote Refinery project, its economic impact has already been significant, reinforcing the case for increased local refining capacity.

Adeyemi-Bero added that encouraging crude sales and petroleum product trading in naira, where mutually beneficial, could help strengthen the Nigerian currency. He noted that the naira’s value in global markets is largely tied to what it can command in trade, and using it for oil transactions could improve its standing. However, he also pointed out that investors who fund projects in dollars would naturally seek returns in dollars unless deliberate policy measures support local currency transactions.

He warned that if Nigeria continues to rely heavily on crude oil exports rather than refining and using the resource to develop local industries, the country risks long-term economic stagnation. He reiterated that the focus must shift from being an export-driven crude producer to a value-driven industrial economy. Failure to achieve this transformation within the next decade, he cautioned, would amount to a national failure.

Adeyemi-Bero further stated that Nigeria’s ambition to become a $1 trillion economy is attainable, but only if the oil and gas sector actively drives energy access, energy security, and industrial productivity. He emphasised that the responsibility to realise this vision now rests with Nigerian operators, as international oil companies have already played their foundational role. He called on industry players to take ownership of the sector’s future and leverage the nation’s resources to achieve economic advancement similar to other resource-rich nations.

In his opening remarks, NAPE President Johnbosco Uche highlighted the importance of the pre-conference workshop to address critical sector challenges. He stressed the need to boost crude production to meet the three million barrels per day target while maintaining long-term technical and operational sustainability to secure Nigeria’s energy future.