Chairman of the House Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, has alleged that Nigerian crude oil is being sold to Dangote Refinery through foreign middlemen, increasing costs significantly.

Speaking at a press briefing, he claimed that intermediaries based in London and Dubai are involved in the transactions, adding no value but charging high fees. According to him, this practice is putting pressure on local refining operations.

Ugochinyere stated that for every $100 barrel of crude, refineries end up paying about $118, with an extra $18 going to these middlemen. He warned that such a system could lead to supply shortages for the refinery.

He further cautioned that Nigeria may soon face fuel and diesel scarcity if crude supply challenges are not urgently addressed. The situation, he said, could disrupt operations at the multi-billion-dollar refinery.

The lawmaker linked the issue to rising global oil prices triggered by the ongoing Middle East crisis involving Iran, Israel, and the United States. Attacks on oil facilities and tensions around the Strait of Hormuz have worsened the situation.

As a result, fuel prices in Nigeria have surged, with petrol from Dangote Refinery selling at high rates and retail prices climbing even further. Observers warn that without reforms, Nigerians could face more increases and supply instability.