Emmanuel Addeh in Abuja 

Professor Emeritus of Petroleum Economics,  Wumi Iledare, has aligned with the recent view by the Chairman of the Organisation of Petroleum Exporting Countries (OPEC) Board of Governors, Ademola Adeyemi-Bero, that Nigeria should end the wholesale export of its crude oil.

In a statement, the renowned engineer described it as a timely wake-up call for ‘policy re-direction and economic realism’, stressing that the message makes economic sense for Nigeria.

Speaking in Lagos, Adeyemi-Bero had challenged Nigeria to prioritise domestic refining and value creation after more than five decades of exporting unprocessed crude. He argued that nations such as Saudi Arabia, the UAE, Malaysia, and Brazil grew wealthier by developing industries around their oil and gas resources.

Iledare, arguing in the same line as Adeyemi-Bero, noted that local refining will help Nigeria reduce its import bills, conserve foreign exchange, and support job creation locally.

 “The message makes economic sense. Local refining reduces import bills, conserves foreign exchange, and supports job creation. Every barrel refined domestically adds value to GDP (Gross Domestic Product), while every imported litre of petrol drains it. It’s about value creation, not just volume production,” he stated.

He noted that Nigeria’s long-standing pattern of exporting crude and importing refined fuel has exposed the economy to foreign-exchange shocks. The emergence of the Dangote Refinery, he said, is a turning point that has already helped ease FX pressure and enhance supply stability. “Without that facility, the government might have been forced to restore fuel subsidies,” he added.

However, Iledare cautioned against interpreting OPEC’s position literally, explaining that what the international oil cartel was proposing is a phased transition.