Why Nigeria’s Locally Produced Crude Has Not Stopped Petrol From Reaching ₦1,450

I understand why Nigerians are angry. We produce crude oil, yet petrol can sell for about ₦1,450 per litre. Our crude does not need to pass through the Strait of Hormuz to reach a refinery in Lekki, but its price is still tied to global benchmarks such as Brent crude. When Middle East tensions push up world oil prices, Nigerian crude becomes more expensive too. The Petroleum Industry Act requires crude to be sold at market-based prices. The naira-for-crude arrangement can reduce foreign-exchange pressure, but it does not automatically make crude cheap. Dangote Refinery also needs steady local supply. When local volumes fall short, it may import crude at international prices, making cheaper petrol difficult. Nigeria’s deeper problem is decades of poorly maintained public refineries and dependence on imported petrol. The gains from subsidy removal were not designed to guarantee cheap fuel; they were meant to free public funds for infrastructure, security, education and state-level support. Nigerians should demand transparency on how these funds are spent. We should press for reliable domestic crude supply, more functioning refineries, quicker pump-price reductions when global crude prices fall, and clear accountability from state governments over increased allocations. We produce oil like a rich country, but until we manage it better, many Nigerians will keep feeling excluded from its benefits.

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