Human rights lawyer and former President of the Nigerian Bar Association, Olisa Agbakoba, has called for a rethink of Nigeria's petroleum pricing policy. He proposed a domestic crude price differential that could bring petrol down to about N400 per litre. Agbakoba made the call in Lagos at the annual conference organised by the National Association of Energy Correspondents. He urged presidential candidates to disclose their positions on petroleum subsidy and domestic crude pricing ahead of the 2027 elections.
Agbakoba stated that the high cost of petroleum products is directly connected to the current cost-of-living crisis in Nigeria. He stressed that Nigerians need to know how political aspirants intend to address the problem. The lawyer cited the example of a medication he bought for N800 in 2023, which now costs N20,000. He argued that some presidential candidates have changed their views on subsidy, and it is essential to know their stance on the issue.
Agbakoba suggested that the president should no longer be the minister of petroleum. He recommended a unified ministry to oversee Nigeria's major energy resources, including electricity, gas, and crude oil. The former NBA president proposed renaming it the Ministry of Energy. He made these suggestions at the conference, where he was an awardee.
The lawyer raised concerns about the divestment of oil and gas assets by international oil companies. He warned that the process could create problems similar to those encountered by Nigeria's electricity distribution companies. Agbakoba cautioned that investors acquiring oil assets need to properly examine the legal and structural issues surrounding the assets before proceeding.
Agbakoba linked the energy sector's policy decisions to the welfare of ordinary Nigerians. He argued that the debate over crude pricing should not be treated as an issue affecting only oil companies and government revenues. The lawyer urged the energy sector and the media to place the impact of petroleum pricing on households and businesses at the centre of the national debate.
The cost of petroleum products remains a major concern for consumers and businesses in Nigeria. Agbakoba's call comes amid continued debate over the removal of the petrol subsidy, domestic crude supply, and the pricing of crude for Nigerian refineries. His proposal involves setting a different price for crude supplied to the domestic market, irrespective of fluctuations in the international market.
Agbakoba's suggestion is similar to Saudi Arabia's approach, where the price differential for the domestic market is different. He believes that a presidential candidate who can make a statement on the crude oil price differential locally will be a better option for Nigerians. The lawyer's recommendation is N400 per litre, which he considers an affordable cost.
Key points
- Agbakoba proposes a domestic crude price differential to bring petrol down to N400 per litre.
