The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to prioritise domestic refining of petroleum products to stabilise the downstream sector and reduce import dependence.
In a statement, CPPE’s Director, Dr Muda Yusuf, said the country’s over-reliance on fuel imports continues to strain foreign exchange reserves and worsens inflation. He noted that investing in local refining capacity would ease pressure on the naira, lower energy costs, and boost economic productivity.
Yusuf stressed that the Dangote Refinery, modular refineries, and the rehabilitation of existing public refineries should be urgently supported and prioritised. “We can’t continue spending billions on imports when we have potential for local refining. It’s draining our economy,” he said.
He also warned that rising fuel prices and forex volatility would persist unless Nigeria strengthens its refining base. According to him, increased domestic refining would also ensure energy security and reduce smuggling.
Yusuf called for incentives that attract private investment into the refining space, including favourable fiscal terms and access to crude oil supply. He added that regulatory clarity and consistent policies are key to encouraging investor confidence.
The CPPE also highlighted the importance of refining for job creation and industrial development. “With functional refineries, Nigeria can become a hub for refined petroleum exports, not just a consumer,” Yusuf noted.
The group urged the government to align its energy transition goals with practical reforms that improve supply, affordability, and sustainability of fuel in the country.
