The failure of the energy policy and its impact on the lives of nearly 200 million Nigerians has been troubling. Business is closed. People are losing their jobs. Families lose their breadwinners. Insecurity is growing. Buhari and APC said the game is good, but when the time comes, they have nothing to give, so something has to give.
On January 18, 2015, Nigeria’s Minister of Petroleum Resources, Diezani Alison-Madueke announced a reduction in fuel prices which took the retail cost from ₦97 to ₦87 and explained that the price reduction was caused by the drop in the price of crude oil in the international market. . The angry Nigerian public who have set high standards for themselves and insisted that ₦87 is high, refused to be humiliated by lowering the price and made sure to vote for the government of Goodluck Jonathan and enter the era of Muhammadu Buhari.
After being sworn in, Muhammadu Buhari looked at the various successful energy industry professionals in the country, somehow saw himself in the midst of them and called himself the minister of petroleum, arguing that he had to be personally involved in order to do it right.
Yes, he has been as good a petroleum minister as he has been a president.
After asserting that the payment of subsidies was a fraud in 2015, Buhari stepped in and in 2022, his administration as minister of petroleum has seen the claims of petroleum subsidies finally exceed the receipts of oil and gas revenue from the sale of crude oil, with the Nigerian National Petroleum Company (NNPC) Limited. recorded gross revenue of ₦2.39 trillion from oil and gas, and earned ₦2.6 trillion in subsidy claims.
As far as petrol supply goes, Abuja has been experiencing a year-long petrol scarcity crisis which has since spread to other parts of the country. The Nigerian public who are angry with petrol prices of ₦97 and ₦87 per liter have found their zen at ₦270 per liter and counting.
The lack of local oil refining capacity in Nigeria has led to fluctuating fuel prices in the international market, with a damaging impact on public and private sector finances. It is true that the public or private sector has benefited from rising prices, but it has become an epidemic all the same.
The outbreak of the Ukraine War in February 2022 has had a severe impact on the international oil market, with reduced supply due to production losses and boycotts pushing crude oil prices to seven-year highs.
Muhammadu Buhari has promised to increase local refining capacity. However, his position led the NNPC to assume a broader role as an importer of petroleum products that Nigeria was supposed to produce. Oil theft has caused production to drop to 1.18 million barrels per day, which is lower than the OPEC quota of 1.8 million bph in Nigeria, with a million barrels lost every day to oil thieves who don’t care about the OPEC quota.
The lack of local oil refining capacity in Nigeria has led to fluctuating fuel prices in the international market, with a damaging impact on public and private sector finances. It is true that the public or private sector has benefited from rising prices, but it has become an epidemic all the same.
Regarding the economic impact, fuel prices have quite an impact on inflation if you consider transportation itself. However, Nigeria’s failure to provide adequate power means that petrol also plays a very high role in domestic power generation in both the private and public sectors. Limited supplies and steep prices are increasing the rate of inflation in an economy that is already suffering from double inflation.
One would expect some regret and attempt at placation from the government, instead of the governing All Progressives Congress choosing to campaign with enough enthusiasm and aplomb to suggest that they believe in governing a country full of greed for punishment, which cannot wait. to be tortured even more than they already were.
The economic impact of petrol prices going from ₦87 to ₦280 is even more staggering when you consider that the national grid only supplies 51.2% of Nigeria’s electricity needs, with the rest generated using petrol powered generators. or diesel. A Dalberg report said Nigeria has 22 million small electricity generators, and the Nigerian Manufacturers Association has said that 40% of the member’s expenditure goes to power plants. This means that the increase in fuel prices affects the economy in a more profound way than anywhere else in the world.
One would expect some regret and try to placate the government, instead of ruling the All Progressives Congress has chosen to campaign with enough eagerness and aplomb to suggest that he believes it is governing the country chock-full of gluttons for punishment, who can not wait. to be tortured even more than he already is. To be honest, he may have a point when considering the difference in the reaction of Nigerians to Buhari’s administration and his predecessor. Still, regardless this cannot be allowed to stand.
The failure of the energy policy and its impact on the lives of nearly 200 million Nigerians has been troubling. Business is closed. People are losing their jobs. Families lose their breadwinners. Insecurity is growing. Buhari and APC talk a good game, but when the time comes, they have nothing to give, so something has to give.
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