Petrol Price Hike: Nigerians Face Deeper Poverty As Oil-Rich Nation Fails To Fix Refineries

The rising price of petrol in Nigeria has continued to worsen the cost of living, with millions of citizens struggling to afford basic necessities amid increasing transportation, food and housing expenses.

According to a report by The Nation on October 22, 2026, Mike Kebonkwu criticised Nigeria’s handling of its petroleum sector, arguing that the country’s status as a major crude oil producer has failed to translate into improved living conditions for ordinary citizens.

Kebonkwu noted that despite Nigeria’s significant crude oil resources, the country remains heavily dependent on imported refined petroleum products, leaving consumers exposed to fluctuations in international oil prices.

He argued that the absence of a consistent and effective government policy has contributed to persistent challenges in the oil industry, while successive administrations have struggled to establish a sustainable domestic refining system.

According to him, the rising cost of petrol has far-reaching consequences for the economy because fuel prices influence transportation, manufacturing, distribution and the cost of essential goods and services.

The writer also questioned the continued expenditure on Nigeria’s state-owned refineries, which have faced years of operational challenges despite substantial government spending on maintenance and rehabilitation.

He maintained that the government should investigate the management of the petroleum sector, strengthen accountability and ensure that public resources produce tangible benefits for citizens.

Kebonkwu further argued that comparing Nigeria’s petrol prices with those of countries that do not produce crude oil overlooks important economic differences, including income levels and minimum wages.

He said Nigeria’s position as an oil-producing nation should prompt a serious examination of why domestic refining capacity has remained inadequate and why citizens continue to bear the burden of high fuel costs.

The writer also rejected the argument that government should completely withdraw from commercial enterprises, insisting that publicly owned refineries could operate effectively under competent and accountable management.

He called for qualified professionals to oversee public institutions, warning that political appointments without adequate accountability could undermine the effective management of national resources.

Kebonkwu cautioned that increasing salaries alone would not necessarily resolve the pressure on households, arguing that broader economic challenges could continue to erode purchasing power if the cost of goods and services keeps rising.

He also expressed concern over Nigeria’s lack of adequate strategic petroleum reserves, describing it as a weakness in national planning that could leave the country vulnerable during emergencies and disruptions to global oil supplies.

The article linked the international energy crisis to geopolitical tensions, including the conflict involving Israel, the United States and Iran, as well as the ongoing Russia-Ukraine war, which have affected global energy markets and supply chains.

However, Kebonkwu argued that international developments should not prevent Nigerians from questioning domestic policy decisions and the longstanding difficulties facing the country’s petroleum industry.

He observed that the consequences of rising fuel prices have become increasingly severe for low-income households, with many struggling to pay for food, accommodation and other essential needs.

The writer also criticised political leaders for concentrating on preparations for the 2027 general elections while, in his view, insufficient attention is being paid to poverty, insecurity and the rising cost of living.

He urged the government to prioritise economic relief, improve public services, strengthen the management of the petroleum sector and establish measures capable of protecting citizens from persistent energy price shocks.

Kebonkwu concluded that addressing Nigeria’s fuel crisis requires more than acknowledging global market pressures; He argued that the country must confront longstanding weaknesses in its refining capacity, public-sector management and national economic planning to reduce the burden on ordinary Nigerians.