A recent article by Olarinre Salako, published in the Nigerian Tribune on October 5, 2026, criticized Nigeria's energy policy, emphasizing the need for affordable and available energy at the grassroots level. Salako argued that President Bola Tinubu's message of prosperity is unrealistic without addressing the energy needs of low-income earners. He cited the example of three Nigerian teachers, highlighting the significant portion of their salaries spent on energy costs.
The columnist highlighted that energy availability and affordability are crucial for energy security, where supply meets demand through distribution networks. He defined energy availability as reliable access to electricity, petrol, diesel, or compressed natural gas (CNG) to power households, transportation, and productive activities. Salako emphasized that energy affordability is the capacity to pay for energy without sacrificing basic necessities like food, healthcare, and housing.
Salako used the examples of three teachers: Mrs. Yewande Tinubu, a Level 10 Accounting teacher in Osun State, earning ₦160,000 monthly; Mallam Ibrahim Shettima, a Level 9 English teacher in Borno State, earning ₦150,000; and Miss Chinwe Okeke, a Level 8 Chemistry teacher in Anambra State, earning ₦135,000. He calculated their monthly energy costs, revealing that they spend a significant portion of their salaries on petrol for commuting and generating power at home.
According to Salako, Miss Okeke's productive-energy costs consume 66.4% of her gross salary, while Mallam Shettima and Mrs. Tinubu spend 59.7% and 56.0%, respectively. These costs are unsustainable, and the teachers may need to seek additional income, compromising their ability to devote time to their classrooms. Salako suggested that the government could consider a production subsidy for locally refined petrol to alleviate the energy burden on low-income earners.
Salako proposed an amendment to former Vice President Atiku Abubakar's production-subsidy proposal, focusing on identifying productive activities that society has a structural reason to protect. He recommended halving the productive-energy burden for the three teachers, from ₦89,586 to about ₦44,793 monthly, through improved energy-system efficiency, lower production costs, and tax-deductible productive-energy costs.
The columnist estimated that the three teachers require about 199 litres of petrol monthly, which translates to about 2.07 million litres of PMS daily for 937,000 public primary and secondary teachers. He suggested that the pilot program could also include eligible non-VIP police personnel, with an assumed 30-litre monthly PMS cap per officer, adding about 4,300 crude-equivalent barrels/day to the combined requirement.
Salako concluded that a mechanism to support affordable energy may require amendments to the Petroleum Industry Act, with tracked PMS through custody-transfer metering and digital reconciliation from refinery gate to end-users. The proposed changes aim to address the energy needs of low-income earners and promote inclusive prosperity in Nigeria.
Key points
- The Nigerian government faces criticism for its energy policy, with calls for a more affordable and available energy supply at the grassroots level.
- A columnist proposed an amendment to the production-subsidy proposal, focusing on protecting productive activities and alleviating the energy burden on low-income earners.
- The energy crisis in Nigeria affects not only low-income earners but also the overall productivity and prosperity of the country.
