Nigeria, a nation endowed with abundant crude oil reserves, is currently grappling with significant challenges in fuel crisis, manifesting in alarming increases in the prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). This predicament is largely a consequence of the ongoing conflict in the Middle East, which has disrupted global oil markets and exacerbated Nigeria’s reliance on imported crude oil. The Dangote Refinery, a pivotal player in Nigeria’s oil sector, procures over 90% of its crude oil from international markets, rendering it vulnerable to fluctuations in global prices.
The Nigerian National Petroleum Company Limited (NNPCL) has been unable to meet the crude oil demands of the Dangote Refinery, precipitating a supply crisis that has devastating implications for Nigerian citizens. The resultant price hikes have further exacerbated the country’s pervasive poverty, plunging more individuals into destitution. A significant proportion of Nigeria’s crude oil output is currently earmarked for debt servicing, while a substantial portion is also lost to crude oil theft, effectively crippling the nation’s capacity to meet domestic refining needs.
This situation underscores a glaring failure of governance, as the administration prioritises debt repayment over the welfare of its citizens. The primary purpose of governance is to ensure the greatest happiness of the greatest number, a principle that appears to be conspicuously absent in this instance. Rather than engaging in rhetoric, the government should adopt pragmatic strategies rooted in political economy to alleviate the suffering of Nigerians.
A viable solution involves renegotiating crude oil debts with international creditors to liberate crude supplies for local refineries, thereby shielding Nigeria from volatile international prices. However, given the government’s apparent inclination to exploit poverty for electoral leverage, it remains uncertain whether the leadership will demonstrate the requisite resolve to mitigate the plafficting Nigerians.
Frederick Braimah. Ph.D.
Elizade University, Ilara-mokin. Ondo State.
16 March, 2026.
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