The APC-led government has demonstrated a troubling disregard for its constitutional responsibilities. Chapter II, Section 14(2)(b) of the 1999 Constitution (as amended) clearly states that the security and welfare of the Nigerian people shall be the primary purpose of government. Yet, this obligation appears to have been subordinated to a purely capitalist and mercantile approach.
Under President Tinubu, the administration of Nigeria’s crude oil and gas resources has been largely subjected to market forces, with insufficient safeguards to protect the welfare of ordinary Nigerians. This policy direction raises serious concerns about the balance between economic liberalization and social responsibility.
A few days ago, during an interview on Arise TV, David Bird, CEO of the Dangote Refinery, stated that petroleum products from the refinery are sold at prices tied to international crude oil benchmarks. In effect, this means that external shocks—such as supply disruptions from geopolitical tensions, including the ongoing crisis in Iran—will continue to drive up domestic fuel prices.
To better appreciate the implications of this policy stance, it is useful to compare fuel prices and minimum wages across selected oil-producing and developed countries:
Saudi Arabia — $0.60 per litre; minimum wage: $1,000
United States — $0.90 per litre; minimum wage: $1,200
Russia — $0.70 per litre; minimum wage: $300
Canada — $1.20 per litre; minimum wage: $1,800
Iran — $0.02 per litre; minimum wage: $120
Nigeria — $0.98 per litre; minimum wage: $40
From the above, Nigeria’s current fuel price is approximately ₦1,380 per litre, while the minimum wage stands at ₦70,000. Filling the tank of an average vehicle now costs close to an entire monthly wage. By contrast, in Iran, fuel costs about ₦28 per litre, while the minimum wage is significantly higher in local currency terms.
The standard of living in any society is closely tied to energy costs, as fuel directly and indirectly affects transportation, food prices, and household expenses. If the Tinubu administration insists on maintaining international pricing for petroleum products, then it must correspondingly adjust minimum wages—potentially to at least $600 (about ₦840,000 monthly)—while also ensuring reliable electricity, food security, and a functional social safety net. These are the irreducible minimum expectations of citizens in any responsible state.
However, Nigeria’s political leadership appears largely indifferent to the welfare of the people. The fuel price crisis is no longer just an economic issue; it has become a national burden imposed by a system that increasingly appears skewed against the average citizen.
At the heart of this crisis lies a powerful network of vested interests often described as “market cabals.” These are not imaginary actors but influential players embedded within Nigeria’s petroleum supply chain—spanning importation, distribution, and pricing. Their influence is subtle yet far-reaching, and its consequences are felt daily by Nigerians.
Notably, these actors operate across both the public and private sectors.
For decades, Nigeria has failed to maintain functional refineries, engaging in a cycle of neglect and inefficiency. This has entrenched dependence on imported petroleum products and created an environment where a few dominant operators control supply. In such a market, competition is weak, and consumers inevitably bear the cost.
Even with the emergence of the Dangote Refinery, there are claims that entrenched interests have constrained the supply of local crude, forcing reliance on international markets. This raises a troubling question: are these powerful actors stronger than the Presidency, or is there a convergence of interests at the expense of Nigerians?
The removal of fuel subsidy, announced without adequate preparation—particularly the rehabilitation of domestic refineries—has exacerbated the crisis. While some view subsidy removal as a necessary reform, its implementation without structural readiness has imposed severe hardship. Nigeria must prioritize optimizing local crude production for both domestic consumption and export.
Furthermore, the legal and institutional framework governing resource ownership requires urgent review. The concentration of control over mineral resources in the federal government has contributed to longstanding inefficiencies and grievances, forming part of the structural roots of the current crisis.
The consequences are evident: rising transport fares, escalating food prices, and increasing pressure on small businesses struggling with higher operating costs. For ordinary Nigerians, fuel price increases are not abstract policy outcomes—they are daily realities that erode income, dignity, and quality of life.
Nigeria must confront the structural issues sustaining this crisis. Expanding and supporting local refining capacity is no longer optional—it is imperative. Private refinery initiatives must be encouraged within a transparent and competitive framework.
At the same time, regulatory institutions must be strengthened and insulated from undue influence to ensure accountability across the sector.
Transparency must become the norm. Nigerians deserve clarity on how fuel prices are determined and who the key actors are within the industry.
Policymakers must act with urgency and resolve. This includes enforcing effective market regulations, dismantling monopolistic structures, publishing transparent pricing mechanisms, and holding all stakeholders—public and private—accountable without fear or favor. It also requires fast-tracking refinery rehabilitation and ensuring that local production translates into tangible price relief for citizens.
Anything short of decisive action will deepen public distrust and prolong economic hardship. Nigeria cannot afford a petroleum sector that serves a privileged few at the expense of the majority. The responsibility now rests squarely on those in power to break this cycle—firmly, transparently, and without compromise.
Ndubuisi Anaenugwu
Ambassador General, Good Governance Ministry (GGM)
Email: ggovernanceministry@gmail.com
