By Abubakar Yunusa
Economic affairs analyst, Ken Ife, has urged the Federal Government to prioritise crude oil sales to Dangote Petroleum Refinery & Petrochemicals to shield Nigeria from the impact of the global oil shock.
Ife spoke during an interview on a business programme on Trust TV, where he argued that escalating tensions in the Middle East could push crude prices as high as $120 per barrel.
He said, “If fuel can go up, crude can go to $120 a barrel — it doesn’t matter. Take the money from Dangote. His dollar is not counterfeit. Sell the crude at the prevailing international price.”
The professor maintained that Nigeria’s petrol price remains comparatively low. According to him, Premium Motor Spirit is “five per cent cheaper than in Saudi Arabia and the lowest in Africa,” noting it is about 40 per cent cheaper than in Ghana and 70 per cent cheaper than in Senegal.
Ife warned that global supply disruptions were tightening the refined products market. He cited export restrictions by China, Russia and Kazakhstan, as well as production cuts by Saudi Arabia, as major factors squeezing supply.
“If countries are blocking the export of refined products, why are you sending your raw material there when you won’t get refined products in return?” he queried.
The analyst also faulted the Nigerian National Petroleum Company Limited, NNPC Limited, for allegedly failing to meet the Domestic Crude Obligation stipulated under the Petroleum Industry Act.
He said the refinery requires about 700,000 barrels daily but is receiving just over 30 per cent of its Nigerian component needs.
Ife suggested that government could allocate up to 500,000 barrels per day to the refinery to build strategic reserves and stabilise supply. “Government will earn the same revenue selling to Dangote at market price,” he added.
He further criticised reliance on imports, alleging that sub-standard petroleum products with high sulphur content were entering the country, with potential health and environmental consequences.
“Where sulphur should be less than 50 ppm, we are getting about 1,500 ppm. It is the health of our country that is paying for it,” he said.
Highlighting recent price movements, Ife noted that crude rose from $68 to $82 — a 26 per cent increase — but the refinery raised pump prices by only about 12 per cent. He added that when crude later dropped, prices were adjusted downward “in real time responsibility.”
He insisted that prioritising domestic refining would help Nigeria avoid fuel scarcity and prevent pump prices from rising beyond N2,000 per litre.
