As petrol prices rise across the country, the energy strategy contained in Prince Adewole Adebayo’s Farewell to Poverty and Insecurity is drawing attention to the question of how Nigeria’s oil wealth can translate into cheaper energy for Nigerians.
Adebayo’s blueprint is anchored on the principle that “Nigeria’s oil must first serve Nigerians,” with a proposal to make petrol, diesel and aviation fuel more affordable and reliably available.
At the centre of the plan is increased domestic refining, with functioning Nigerian refineries given transparent and reliable access to locally produced crude.
Government, it proposes, should publish crude allocations, enforce supply agreements and eliminate avoidable logistics bottlenecks.
The blueprint also argues that any tax relief, preferential crude supply or other government concession granted to refineries should ultimately benefit consumers through lower prices.
Rather than imposing arbitrary pump-price controls, Adebayo proposes reducing prices through increased local production, lower transportation and distribution costs, greater storage capacity and stronger competition.
The plan gives particular attention to diesel, noting its importance to manufacturing, agriculture, telecommunications, construction, logistics and small businesses.
It proposes greater domestic diesel production and measures to eliminate unnecessary taxes, charges and distribution costs.
Adebayo also proposes expanding the use of Nigerian gas for electricity, transportation, industry and household cooking, while reducing gas flaring.
Under the proposed first 18-month targets, government would seek increased crude supply to domestic refineries, higher local production of petroleum products, stronger strategic reserves and lower avoidable logistics costs.
Ultimately, the blueprint says the test should be simple: fuel must be consistently available, while transportation and the cost of doing business begin to fall.
