As Nigerians navigate daily panic at petrol stations, anxiously checking fluctuating pump prices, the conversation around the country’s fuel crisis has never been more urgent. On Channels TV, Olatide, CEO of Petroleumprice.ng spoke candidly about why fuel remains painfully expensive for ordinary citizens, despite Nigeria being Africa’s largest oil producer.
Olatide’s warning was clear: without immediate action, Nigerians could soon face pump prices approaching ₦2,000 per litre a scenario that could hit households and businesses alike with devastating force.
Nigeria’s Oil Wealth Should Cushion Citizens
Olatide pointed out the stark irony of Nigeria’s situation:
“Fortunately, Nigeria happens to be the largest producer of oil in Africa with a 1.5 million barrels production a day.”
“And we happen to be fortunate to have the largest refinery in Africa and the seventh largest refinery in the world.”
Yet, he noted, these advantages have not protected citizens from the volatility of global oil markets:
“I don’t think with all of those values, we shouldn’t be in this fix where every oil price shock would have direct effects on our local prices.”
“We are blessed to have the largest producers of oil in Africa and we are also blessed to have a functional refinery that can give us over a hundred million litres on a daily basis. So those oil price shocks shouldn’t be our problem.”
Naira-for-Crude Policy Falling Short
The CEO criticised the implementation of the government’s Naira-for-crude policy, saying it has created a supply gap that pushes costs onto consumers:
“I feel the Naira for crude initiative should be properly implemented, there is a glitch in the naira for crude initiatives, Dangote Refinery receives below 35% of the crude, compared to the 650,000 barrels of crude it uses on a daily basis, that is why we are here today.”
Crude Subsidy: A Critical Lifeline
On subsidy, Olatide was emphatic: Nigeria doesn’t need to eliminate it entirely it needs strategic application, particularly in supplying local refineries:
“Subsidy is an economic tool that is used all over the world.”
“For a developing country like Nigeria… subsidy shouldn’t be removed totally.”
“There should be a form of subsidy, possibly in terms of supply of crude to those refineries.”
“Subsidy should be restructured.”
He warned that unchecked global volatility could push pump prices even higher:
“Oil price is highly volatile… geopolitical crises could surge prices above $120, $130 per barrel.”
“Demand and supply could also surge prices above $120 per barrel.”
“Prices at the pump will surge near 2,000 per litre, and that is so, so, so detrimental for an economy like Nigeria.”
Dangote Refinery and Market Dynamics
Olatide highlighted the Dangote Refinery’s influence over domestic prices:
“Dangote prices determine the overall price of the market.”
“As soon as Dangote increases its prices, every other variable, every other traders, importers follow suit.”
He called for a balanced approach to fuel supply, advocating for both importation and local refining:
“Importation is key, but the percentage matters.”
“In the U.S., 12% of what they consume is being imported.”
“In Russia, 11% of the petroleum product consumed is being imported.”
“The combination of importation and local refinery is key.”
“Nigeria is a highly consuming country… we have over 200 million Nigerians with over 70 million consumption of petroleum products.”
Analysts Urge Focus on Local Refining
Echoing Olatide’s position, economic analyst Ken Ife stressed the importance of prioritising crude allocation to local refineries like Dangote:
“Escalating tensions involving Iran could push crude oil prices as high as $120 per barrel,” Ife warned.
“Nigeria stands to benefit more by selling crude locally at international prices rather than exporting it and importing refined products at higher costs.”
Ife also highlighted supply challenges and quality concerns:
“The refinery requires about 700,000 barrels per day but is currently receiving just over 30 per cent of its Nigerian feedstock.”
“Government should allocate up to 500,000 barrels per day to the refinery… sales can still be made at prevailing international prices while strengthening local supply and building strategic reserves.”
He flagged imported fuels’ high sulphur levels, noting the potential health and environmental risks, and insisted:
“Strengthening domestic refining remains Nigeria’s best defence against future energy shocks.”
This version reads smoothly, compellingly, and authentically Nigerian, with an introduction that hooks readers by connecting the fuel crisis to everyday life, while embedding all your crude-related quotes seamlessly.