…Says policy could slash petrol prices, shield Nigerians from looming global oil crisis
A human rights activist and community leader, Chief (Comrade) Austine Ikubese, has urged President Bola Ahmed Tinubu to take urgent steps to protect Nigerians from the impact of global petroleum supply disruptions by approving a benchmark price of ₦100,000 per barrel for crude oil supplied to the Dangote Refinery.
In an open letter addressed to the President, Ikubese argued that Nigeria must leverage its status as Africa’s largest oil producer and the refining capacity of the Dangote Refinery to insulate the nation from volatile international oil markets, mounting fuel costs, and worsening economic hardship.
The activist warned that escalating geopolitical tensions in major oil-producing regions, particularly the Middle East and around the Strait of Hormuz, pose serious risks to global energy supplies and could trigger fresh spikes in fuel prices worldwide.
According to him, Nigeria should not be forced to bear the consequences of international crises when it possesses abundant crude oil reserves and sufficient domestic refining potential.
“Nigeria must not become a victim of external shocks. It would be unacceptable for citizens to suffer rising fuel prices, transportation costs, and food inflation because of developments thousands of miles away when practical local solutions exist,” he stated.
Ikubese called on the Federal Government to guarantee consistent and uninterrupted crude oil supply to the Dangote Refinery under favourable pricing arrangements, describing the facility as one of the most transformative industrial investments in the country’s history.
He maintained that pegging crude supply to local refineries at ₦100,000 per barrel or below could significantly reduce Nigeria’s exposure to international oil price volatility, stabilize domestic fuel costs, conserve foreign exchange, and strengthen national energy security.
The activist further claimed that such a policy could potentially bring petrol prices down to between ₦700 and ₦800 per litre, while also lowering the prices of diesel, kerosene, and aviation fuel.
His intervention comes amid growing public concerns over rising fuel costs and reports suggesting that petrol prices could climb even higher if global crude oil prices continue their upward trend.
Ikubese acknowledged recent government measures aimed at cushioning the impact of rising fuel prices but argued that temporary interventions alone would not resolve the underlying structural challenges in Nigeria’s downstream petroleum sector.
Rather than being viewed as a subsidy, he described the proposed crude pricing arrangement as a strategic investment in economic resilience, industrial growth, and national stability.
“Energy security is national security,” he said, stressing that the availability and affordability of petroleum products directly affect transportation, agriculture, manufacturing, healthcare, education, and small businesses across the country.
The activist also called for a review of relevant provisions of the Petroleum Industry Act (PIA) to align them with Nigeria’s current economic realities and energy security objectives.
He insisted that with the operational capacity of the Dangote Refinery, Nigeria has an unprecedented opportunity to end decades of dependence on imported refined petroleum products despite its vast crude oil wealth.
“The era of recurring fuel scarcity, import dependence, and vulnerability to global supply disruptions must come to an end,” Ikubese declared, urging President Tinubu to seize what he described as a defining moment to strengthen Nigeria’s energy independence and leave a lasting legacy of transformative leadership.
The proposal is expected to spark fresh debate among policymakers, industry stakeholders, and economists over the balance between market pricing, energy security, and the need to ease the economic burden on Nigerian households and businesses.
_*Read the full letter in extenso as reproduced hereunder:*_
*OPEN LETTER TO PRESIDENT BOLA AHMED TINUBU, GCFR*
*Nigeria Must Be Shielded from Global Petroleum Supply Shocks: Benchmark Crude Oil Supply to Dangote Refinery at ₦100,000 Per Barrel to Safeguard National Energy Security*
By Chief (Comrade) Austine Ikubese
Human Rights Activist and Community Leader
Your Excellency, President Bola Ahmed Tinubu, GCFR,
I write once again with a profound sense of patriotism, urgency, and concern for the welfare of millions of Nigerians whose daily lives continue to be significantly affected by developments in the global energy market.
Following my earlier open letter of March 12, 2026, I am compelled to renew my appeal to Your Excellency to take decisive and strategic measures aimed at insulating Nigeria from the adverse effects of international petroleum market volatility. Specifically, I urge the Federal Government to benchmark the supply of crude oil to the Dangote Refinery at ₦100,000 per barrel and remove all bureaucratic, regulatory, and logistical impediments that may hinder efficient local refining operations.
This appeal is driven not only by economic considerations but also by the overriding national interest. It is about protecting Nigerians from avoidable hardship, strengthening energy security, deepening local value addition, preserving foreign exchange, and ensuring that Africa’s largest crude oil producer remains resilient against external supply disruptions.
Today, global crude oil prices continue to fluctuate significantly, driven largely by geopolitical tensions and conflicts in key energy-producing regions. Of particular concern is the persistent instability in the Middle East and the uncertainty surrounding the Strait of Hormuz, one of the world’s most critical energy corridors. Any prolonged disruption in that region could trigger sharp increases in global oil prices, fuel supply shortages, inflationary pressures, and broader economic instability.
Nigeria must not become a victim of such external shocks.
As a nation richly endowed with crude oil resources, it would be unacceptable and unjust for ordinary Nigerians to bear the painful consequences of crises occurring thousands of miles away when practical domestic solutions are readily available. No Nigerian should be subjected to excessive fuel price increases, rising transportation costs, escalating food inflation, or worsening economic hardship because of international developments beyond their control which in sense should be a blessing to Nigeria not otherwise.
It is therefore imperative for the Federal Government to adopt policies that prioritise domestic refining and guarantee stable access to petroleum products for Nigerian consumers. One of the most effective ways of achieving this objective is by ensuring a predictable and uninterrupted supply of locally produced crude oil to the Dangote Refinery under favourable and sustainable pricing arrangements.
The Dangote Refinery represents one of the most transformational industrial investments in Nigeria’s history. It possesses the capacity not only to meet domestic fuel demand but also to position Nigeria as a leading refining hub for Africa. To fully realise these benefits, government policies must actively support its operations and guarantee uninterrupted access to crude oil feedstock.
By benchmarking crude oil supply to local refineries at ₦100,000 per barrel or lower, the Federal Government would be taking a bold and practical step towards reducing Nigeria’s exposure to volatile international oil prices, stabilising domestic fuel costs, strengthening energy security, conserving foreign exchange, and providing much-needed relief to households and businesses. Such a policy could significantly reduce the pump price of petrol to as low as N700 to N800 per litre as well as the cost of other petroleum products, including Automotive Gas Oil (AGO), kerosene, and Jet A1 fuel.
Recent government interventions, including the announcement by the Honourable Minister of Finance regarding the temporary pegging of PMS prices at NNPC retail outlets nationwide to N1,350, clearly demonstrate the administration’s concern over rising fuel costs and the severe economic hardship they impose on citizens.
However, such interventions are often misconstrued as subsidies, yet they provide only limited and temporary relief without addressing the underlying structural challenges in the downstream petroleum sector. These concerns have been further heightened by media reports, particularly a prominent front-page headline in Vanguard newspaper of Saturday, October 10, 2026, which projected that the pump price of petrol could rise to as much as ₦1,900 per litre. Such projections understandably deepen public anxiety and underscore the urgent need for sustainable policy measures that will insulate Nigerians from the adverse effects of global energy market volatility.
The proposed crude supply arrangement should not be viewed as a subsidy or a distortion of market principles. Rather, it should be recognised as a strategic national investment in economic resilience, energy security, and industrial development. Across the world, governments routinely implement measures to protect critical sectors and shield their citizens from global economic disruptions. Nigeria should be no exception.
Your Excellency, energy security is national security.
The availability and affordability of petroleum products have a direct impact on virtually every sector of the economy, including transportation, agriculture, manufacturing, healthcare, education, and commerce. When fuel prices rise uncontrollably, the most vulnerable members of society inevitably suffer the greatest consequences. Market traders, artisans, transport operators, civil servants, students, and small business owners all experience increased hardship, shrinking incomes, and declining standards of living.
The Federal Government must move beyond short-term interventions and institutionalise enduring reforms that guarantee affordable, reliable, and sustainable energy access for all Nigerians. This requires a deliberate strategy focused on strengthening domestic refining capacity, prioritising crude oil supply to local refineries, eliminating operational bottlenecks, and maintaining a stable and investor-friendly regulatory environment.
Furthermore, there is a compelling need to undertake a strategic review of relevant provisions of the Petroleum Industry Act (PIA) to ensure alignment with current economic realities, national energy security objectives, and the evolving needs of Nigeria’s refining sector. Such measures are essential to building a resilient, self-sufficient, and globally competitive energy industry capable of delivering lasting benefits to the Nigerian people.
History will remember this administration not merely for implementing reforms, but for ensuring that those reforms translated into tangible improvements in the lives and livelihoods of ordinary Nigerians.
The time has come for Nigeria to fully harness its abundant petroleum resources for the direct benefit of its citizens, especially now that the Dangote Refinery possesses the capacity to meet a significant portion of the nation’s domestic, industrial, and commercial fuel demands. The era in which Nigerians endured recurring fuel scarcity, relied on imported refined petroleum products despite the country’s vast crude oil reserves, and remained vulnerable to global supply disruptions must come to an end. Nigeria should prioritize the efficient utilization of its local refining capacity to ensure energy security, reduce dependence on imports, stimulate industrial growth, and improve the overall welfare of its people.
Your Excellency, this is a defining moment.
It presents a unique opportunity to deepen economic resilience, strengthen national energy independence, protect citizens from external shocks, and leave behind a lasting legacy of visionary and transformative leadership.
I respectfully urge Your Excellency to give urgent consideration to this appeal in the interest of national development, economic stability, energy security, and the welfare of present and future generations of Nigerians.
Please accept, Your Excellency, the assurances of my highest esteem and warm regards.
Respectfully submitted,
Chief (Comrade) Austine Ikubese
Human Rights Activist and Community Leader
Oriade Local Council Development Area (LCDA)
Lagos State, Nigeria.
