Nigeria’s oil sector remains mired in opacity, making it nearly impossible to determine the fair price of petrol for consumers, according to a renowned expert in petroleum economics, Wunmi Iledare.
Speaking as a guest on the “Boiling Point Arena” current affairs program, Iledare, attributed the pricing conundrum to the lack of transparency and the withholding of critical operational data from the public.
Iledare, who is also a Professor Emeritus at the Centre for Energy Studies in Louisiana, USA, noted that the absence of public disclosure on key proprietary information within the oil and gas sector is obstructing Nigerians from receiving fair value for petrol, despite the country’s vast natural resources.
“There is a general lack of transparency in the oil and gas sector,” Iledare stated. “When you dig deeper, you’ll find complexities that go beyond just pricing—it’s a web of hidden dealings. Without transparency, determining the correct price for petrol will always be a puzzle.”
Local Refinery Pricing Still a Challenge
When asked why locally refined petrol, such as that from the Dangote refinery, doesn’t come at a lower price—despite the elimination of forex-related costs—Iledare responded emphatically, urging caution and indicated that the issues are far more complicated than they appear.
He pointed out that these complexities stem from systemic inefficiencies and mismanagement, rather than simply from market forces.
Iledare criticized Nigeria’s leadership approach in the oil sector, emphasizing that the country’s crisis is exacerbated by “transactional leaders” who lack the vision for transformational change.
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He further lamented the role of the presidency in oil and gas policy, which he argued contradicts the intent of the Petroleum Industry Act (PIA).
“The President being the main actor in the energy sector is a misnomer,” Iledare said. “The Petroleum Industry Act envisioned the Ministry of Petroleum to play that role, not the presidency.”
Economic Populism and Subsidy Culture
According to Iledare, Nigeria’s long-standing subsidy regime has led to economic populism, where the government and citizens favour policies that, while temporarily easing costs, ultimately drive the nation deeper into debt and poverty. He warned that without reform, the country risks remaining trapped in this cycle.
He also spoke on the strained relationship between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Group, cautioning against placing blame on Dangote. “Blaming Dangote is a mistake,” Iledare stated.
“He is a patriotic individual who should be supported, not discouraged. The government must collaborate with him to address the challenges in the downstream petroleum sector.”
Way Forward for Nigeria’s Oil Industry
Iledare stressed the need for better public education on the realities of the oil sector and called for genuine policy reform that focuses on long-term solutions rather than short-term populism.
He concluded by emphasizing that transformational leadership and cooperation between government and private sector players like Dangote are key to resolving the nation’s energy crisis.
