Nigeria’s crippling fuel crisis has a solution that doesn’t involve subsis, according to the country’s independent petroleum marketers. Reviving the long-dormant Port Harcourt, Warri and Kaduna refineries would slash prices more effectively than any government handout, they argue.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, made the case as fuel prices hover between N1,230 and N1,299 per litre in Abuja. His comments came amid renewed debate over fuel subsis following presidential candidate Atiku Abubakar’s controversial proposal to restore them.
But why focus on subsis when the infrastructure already exists? Ukadike believes restoring the refineries, along with Nigeria’s pipelines and 21 depots, would create the competition needed to calm price volatility. “Whether we remove subsidy or not does not arise,” he told reporters.
The stakes are high. July data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed what many suspected: all three refineries remain non-functional. Without domestic refining capacity, Nigeria continues importing fuel despite being a major crude oil producer.
Getting those refineries online could transform the market overnight, creating the kind of price relief that subsis only temporarily mask.
Leave a comment