Nigeria’s Petrol Crisis: Beyond Subsidy to an Energy Affordability Plan

Nigeria produces crude oil and now has major domestic refining capacity, yet petrol sells for about ₦1,400 per litre in Lagos and Abuja and even more in parts of the North. The problem is bigger than refining alone. Crude is priced globally, the naira remains vulnerable, and refining, transport, storage and distribution all add to the final pump price. I believe Nigeria must move beyond the false choice between an unsustainable subsidy and exposing citizens fully to every global oil-price shock. Domestic refineries should receive Nigerian crude through a transparent, independently audited pricing formula that allows producers and refiners to earn fair returns while reducing avoidable import costs. I also urge the Federal Government to create a Petroleum Price Stabilisation Fund. A defined share of exceptional oil revenue should be saved when prices are high and used automatically to cushion severe domestic price shocks. Every inflow, withdrawal and pricing decision should be publicly disclosed and independently audited. Ultimately, affordable living requires more than cheaper petrol. Nigeria should invest petroleum revenue in gas, reliable electricity, rail, mass transit and competitive refining. The real goal is cheaper energy, transport and production for Nigerians, while turning finite oil wealth into lasting national assets.

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