Featured

Shedding light on the petrol subsidy imbroglio

Published

3 years ago

June 24, 2023

By Olukola Osunbunmi

Nigeria is a blessed country, no doubt. Almighty God in His infinite mercies has blessed Nigeria with everything that most developed countries in the world do not have. But there is a curse to our development or should one say there are clauses or impediments for the giant in Nigeria to be reawakened. In the 1960s, Nigeria was at par with the Asian Tigers namely Hong Kong, Taiwan, South Korea and Singapore. But unfortunately, we were left behind by the aforementioned countries between the early 1950s and 1990s as they underwent rapid industrialization while at the same time maintained exceptionally high growth rate of 7 percent a year. At a time in the history of this nation, our currency, the naira, was one of the strongest in the world. It had more value than the dollar and pound sterling.

In March 2009, the late President Umaru Musa Yar’Adua of blessed memory unveiled and launched the logo of the ‘Rebranding Nigeria’ campaign with the slogan: ‘Good People, Good Nation’. Truly Nigeria is a country of good people but we have been very unlucky with those at the helm of affairs, elected or appointed. The sleaze that characterized the administration of former President Muhammadu Buhari cannot be over emphasised. Those saddled with the responsibilities of putting smiles on the faces of fellow compatriots rather made them weep in agony and pain. The attendant consequences have been followed with the gale of suspensions of the leading figures of the last administration and more will still come.

On May 29, 2023 at the Eagle Square Abuja during a change of baton between former President Buhari and President Bola Ahmed Tinubu, the latter made a pronouncement that put paid to the ghost of subsidy in Nigeria once and for all. The pronouncement meant that the Government will no longer subsidise petrol for the citizens rather the subsidy will be pushed to other sectors like health, education, transport and others that will make life more meaningful for an average Nigerian. It was a tough decision to make but Nigerians are gradually embracing the reality and are expectantly looking forward to how the Tinubu’s government will cushion the effect of the subsidy removal for them.

It did not however come as a surprise that the shylock oil marketers increased the pump price of petrol from N195 to N547 per litre, an increment of more than 250 percent. The question to ask is: how did the NNPC arrive at the new price? Immediately after the speech made by the President on the Petrol subsidy removal, one observed that petrol marketers in Abuja started selling at N350 per litre and this continued until the NNPC made their pronouncements that the pump price would henceforth sell at N537 per litre in Abuja. It however mean a litre of fuel is being subsidised at N352 per litre. Where is the money, who is keeping it for Nigeria and Nigerians, who are the beneficiaries and who are their cronies? Could these fellows come out boldly and tell Nigerians where the humongous money generated from the subsidy debacle are stashed.

To start with, how much does it take Nigeria to transport and bring back its refined crude from abroad? The understanding is that the crude is transported abroad to be refined and after the process is completed, the refined product is brought to Nigeria. The Premium Motor Spirit (PMS) otherwise known as petrol is not the only refined product from crude oil, there are diesel, kerosene, asphalt, paraffin, consumer goods, cosmetics among others.

It is high time agencies that have things to do with our oil and as well as the security agencies come forth to give account of their stewardships to Nigerians. How many litres of petrol does Nigeria consume daily? As at last year and early this year before the subsidy pronouncement, the Nigerian National Petroleum Company Limited (NNPCL) said Nigeria consumes 68 million litres daily. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) within the same period contradicted NNPCL’s claim. The NMDPRA also contradicted itself. It first gave 62.9 litres and later 66.8 litres. The Comptroller General of Nigeria Customs Service, Retired Colonel Hameed Ali also disagreed with NNPCL on the daily consumption of fuel. Following the subsidy removal, it is however strange that Nigeria now consumes between 13 million and 16 million litres of petrol per day. Where is the payment for the non-existing 52 million litres or thereabout been bandied about in the last 18 months? Where is the excess going to? Who is deceiving who? The oil industry players and heads of security agencies must come out clean. He who comes into equity must come with clean hands!

As a chartered Accountant, one cannot explain and convince myself as to how the NNPCL arrived at the N547 per litre and this has to be itemized and explained to all Nigerians as transparently as possible so as to earn the respect of all. The decision affects the life of all Nigerians and to a large extent, the explanation will help the Tinubu administration gain the trust of the people.

That being asked, it is being suggested that the Federal Government should allow the modular refineries to operate as the Dangote Refinery so as to cut down on perceived monopoly of the Dangote brand. If there is no competition, Nigerians will be forced to buy at the price being forced in them by this monopoly. In addition, those in the area of oil and gas and who have the capacity should in the interim be encouraged to bring in the PMS for competitive pricing and competitive service to Nigerians.

Osunbunmi is a chartered accountant and forensic auditor

Share on Facebook

Featured

Strategic Partnerships, Diaspora Investment and Improved Workforce Critical to Industrialization-DG RMRDC

Published

2 days ago

November 12, 2026

The Gleamer

By: Stella Azi and Adaora Adibe

The Director-General/Chief Executive Officer of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has called for a strategic shift from the exportation of raw commodities to domestic processing, manufacturing and value addition, declaring that Nigeria possesses enormous untapped raw material resources capable of driving industrialisation, creating jobs and strengthening the country’s economic competitiveness.

Prof. Ike-Muonso made this submission in a lecture titled Unlocking Nigeria’s Raw Material Value Chain for Industrialization, Manufacturing and Competitiveness, where he presented an extensive assessment of Nigeria’s resource endowments, industrial challenges and emerging investment opportunities across agricultural commodities, solid minerals and waste-based raw materials.

The lecture highlighted a combined US$2.65 trillion global market opportunity across 30 major raw material value chains, comprising 12 agricultural value chains valued at US$932 billion, 11 mineral value chains worth US$1.352 trillion and seven circular-economy value chains estimated at US$366 billion.

According to the RMRDC Boss, Nigeria must move beyond the traditional approach of extracting and exporting raw materials to building competitive domestic industries that transform these resources into intermediate products, industrial inputs and finished goods for local consumption and international markets.

He observed that the country’s manufacturing sector has struggled to sustain its 2014 peak, with its contribution to real Gross Domestic Product declining from 9.64 per cent in 2014 to 8.05 per cent in 2025, representing a 16.5 per cent decline. He also drew attention to the increasing cost of raw material imports, which rose to US$20.5 billion in 2025, approximately six times the 2020 level.

He explained that the growing dependence on imported industrial inputs exposes Nigerian manufacturers to foreign exchange volatility, increases production costs and weakens the competitiveness of locally manufactured products.

Prof. ke-Muonso stressed that the solution lies in developing domestic raw material value chains through deliberate investment in processing facilities, research and development, technology, infrastructure and stronger linkages between producers, processors and manufacturers.

He identified agriculture, solid minerals and industrial waste as three major resource platforms for Nigeria’s industrial transformation, stating the country’s significant production capacity and the enormous opportunities available for downstream processing.

Ike-Muonso noted that Nigeria produces over 63 million metric tonnes of cassava annually, making it the world’s largest producer, while also maintaining strong positions in cocoa, cashew, sesame, palm oil and cotton. However, more than 80 per cent of agricultural output leaves farms without adequate processing, resulting in the loss of significant economic value and industrial opportunities.

In the solid minerals sector, he identified more than 44 commercially viable minerals across over 500 locations, including lithium, gold, barite, bitumen, iron ore and high-grade limestone, describing them as strategic resources capable of supporting steel production, energy storage, electrification and advanced manufacturing.

The DG further drew attention to Nigeria’s industrial and agro-waste resources, noting that the country generates over 32 million tonnes of solid waste annually. He explained that agricultural residues, cassava peels, scrap metals, plastics and electronic waste could serve as important feedstock for bio-fertilisers, industrial chemicals, recycled polymers, energy production and other manufacturing applications.

In the agricultural sector, the DG identified cassava and industrial starch, cotton and natural textiles, natural rubber and elastomers, oil palm and oleochemicals, maize derivatives and cocoa processing as priority areas requiring increased investment.

He explained that processing agricultural commodities into industrial starch, sweeteners, textiles, technical rubber, specialty fats and other intermediate products would enable Nigeria to capture more value from its agricultural resources while reducing dependence on imported industrial inputs.

For the minerals sector, he highlighted crude oil-to-olefins and petrochemicals, lithium and energy storage, iron ore and steel, rare earth elements, bauxite and aluminium, and copper and electrification as strategic investment opportunities.

He particularly emphasised the importance of moving beyond mineral extraction into beneficiation, refining, battery precursors, industrial chemicals, metal fabrication and advanced materials production.

On the circular economy, Prof. Ike-Muonso identified electronic waste recovery, scrap metal recycling, plastic waste processing, agro-waste valorisation and battery recycling as emerging industrial opportunities.

He explained that transforming waste into productive industrial feedstock would not only reduce environmental pollution but also create new manufacturing industries, generate employment and reduce the importation of valuable industrial materials.

He noted that to address the structural challenges confronting raw material-based industrialisation, the DG highlighted the strategic interventions of the RMRDC, particularly the proposed 30% Value Addition Bill and the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP).

He described the 30% Value Addition Bill as an important policy instrument designed to encourage domestic processing of raw materials before export, strengthen local manufacturing capacity and guarantee access to essential raw materials for Nigerian industries, and NISSRAMP as a critical data infrastructure that would improve access to verified information on the availability, location and quality of raw materials.

According to him, the combination of appropriate policy instruments and reliable resource data would help de-risk investments, improve transparency and strengthen confidence in Nigeria’s raw material sector.

He emphasised the importance of collaboration among government, academia and industry in developing bankable projects, sharing investment risks and accelerating the establishment of processing and manufacturing facilities.

Professor Ike-Muonso called on Nigerians in the diaspora and other local and international investors to take advantage of the opportunities available in Nigeria’s raw material sector.

He identified industrial processing parks, mineral beneficiation and refining, agro-industrial platforms, circular-material processing, industrial input manufacturing and enabling infrastructure as viable investment platforms.

He noted that diaspora investors could contribute beyond financial capital by bringing technology, international business networks, governance standards, technical expertise and access to global markets.

He maintained that Nigeria’s industrial transformation requires coordinated investment across the entire value chain, from raw material sourcing and aggregation to processing, manufacturing, certification and export development.

Professor Ike-Muonso stressed that the country’s industrial future would depend not merely on the volume of raw materials extracted but on the capacity to transform them into competitive products that meet domestic and international market requirements.

He maintained that developing local value chains would stimulate industrial growth, create employment opportunities, diversify exports, conserve foreign exchange and deepen Nigeria’s technological capabilities.

Through its strategic interventions, the RMRDC is positioning itself as a critical bridge between resource availability, investment opportunities and industrial competitiveness, with the ultimate objective of transforming Nigeria from a predominantly raw material exporting economy into a strong manufacturing and value-adding nation.

Ike-Muonso has demonstrated this since assumption of office as the Director General/ CEO RMRDC in the area of capacity building, improved working conditions, promotion of merit, and maintaining a conducive environment that rewards excellence, innovation and dedication. This is evident in his institution of RMRDC training school, reward for winners of the RMRDC innovation challenge among others.

His commitment has brought recognition both nationally and internationally: Al-Jazirah double honour awards as Public Servant /Government Agency of the year 2024-2025 and the recent election as the Sub-Saharan Africa Regional Representative on the Board of the World Association of Industrial and Technological Research Organisations (WAITRO) is a attestation to his commitment.

Concluding the lecture, the DG charged staff, researchers, manufacturers and investors to see themselves as nation builders in the new era of raw materials-led industrialization.

Share on Facebook