Nigeria’s Oil Paradox and Quest for Refined Salvation

Blessed beyond measure, Nigeria has black gold running in its earth’s veins. Crude oil, the lifeblood of economies and a passport to prosperity flows deep beneath the surface, yet a troubling paradox persists above ground.

How has a country so richly endowed with crude become shackled to global markets, importing refined petroleum products like a beggar at the table of plenty?

Why, in a land where oil should be its pride, do Nigerians bear the heavy burden of sky-high petrol prices while the nation’s four refineries, once industry giants, lie dormant, reduced to shadows of forgotten potential, as the quest for refined salvation drags on?

The story is strange, almost biblical in its tragedy, like the prodigal son squandering wealth and returning home empty-handed. But unlike the biblical tale, Nigeria has not yet found its way home. Instead, it wanders through the wilderness of broken promises, mismanagement, and the corrosive grip of corruption that eats away at its future.

Once, Nigeria’s refineries were symbols of self-reliance, meant to transform the nation’s crude oil into refined products. They were meant to be the underpinnings of salvation, ensuring energy security so the country would never depend on others for a resource that fuels its economy. Yet, for decades now, these once-proud refineries have slumbered, their fires long extinguished, their potential turned to rust.

Each new administration, from Obasanjo to Jonathan to Buhari, has promised to revive these giants, to breathe life back into their cold hearts. Yet each promise has melted away like dew in the morning sun, leaving the people with nothing but the dust of broken hope. Billions of Naira have been poured into the turnaround maintenance of these refineries, yet they remain silent, like ancient ruins that tell a story of squandered opportunity. The reason for this is the all too familiar and painful corruption, that invisible hand that reaches into every pot and leaves it empty, robbing the nation of its potential.

Bola Tinubu’s administration has now taken the bold step of removing the fuel subsidy. This policy has long shielded Nigerians from the actual fuel cost but has also drained the country’s scarce foreign reserves. This decision was as sharp as a machete cutting through a dense forest of economic mismanagement, exposing the raw realities beneath.

For years, Nigeria had been paying to keep fuel prices artificially low, a costly gesture that weighed heavily on the country’s finances. The subsidy was like a bandage on a festering wound, covering the problem but never healing it. The removal of this bandage has exposed the deep rot beneath, and the people now bear the pain of higher fuel prices. Overnight, the cost of petrol has skyrocketed, throwing the economy into turmoil and plunging millions of Nigerians into more profound hardship.

Petrol, once accessible to many, now feels like a rare and precious metal. In sprawling cities and quiet villages alike, people groan under the weight of inflation. Transportation costs have quadrupled, businesses are struggling to keep their generators running, and the once-vibrant hum of the streets has slowed to a low murmur of discontent.

True, the subsidy was draining the nation’s foreign exchange reserves, and removing it was necessary to stop the bleeding. Still, the human cost cannot be ignored in the cold calculus of economics. Only time will tell whether this painful step will lead to a cure or merely deepen the wound. However, one thing is clear: removing the subsidy has exposed the raw truth of our dependence, exposing the fragility of an economy overlooking fundamentals.

And yet, amid this storm, there is a glimmer of hope, a private endeavour in the form of the Dangote Refinery. This massive project, heralded as a potential saviour, promises to meet the local demand for refined petroleum products. It is a promise in the chaos, a potential game-changer that could finally end Nigeria’s reliance on imported fuel. For a moment, it seems the nation might finally reclaim control of its destiny.

But even this hope is not without shadows. The Dangote Refinery has been embroiled in its struggles, caught in a bitter dance with the Nigerian National Petroleum Company (NNPC).

The NNPC insists on due process, while the refinery’s management alleges underhanded dealings. It is a story Nigerians have heard too many times: the mighty fight over spoils while people suffer.

However, recent reports suggest that these disputes are beginning to simmer, with the NNPC agreeing to sell crude oil to Dangote in Naira and stepping back from the refinery’s operations. This could signal a breakthrough where market forces determine fuel pricing, potentially leading to lower prices and a more stable supply. But even this flicker of hope is fragile, and history has taught Nigerians to be wary of promises.

Therefore, it is hard not to ask the more profound, philosophical questions at this juncture. Is this abundance of oil truly a blessing, or is it a curse? Like the biblical manna that fell from heaven, oil has the power to sustain a nation. But unlike the manna, which nourished and never ran out, Nigeria’s oil has been mismanaged, and its fruits have often gone to feed others while the people starve at home.

In theological terms, one might ponder whether this is a test, a divine challenge to see if the nation can rise above its selfish instincts, corruption, and shortsightedness. Will Nigeria finally take control of its resources, refine its oil, and refine its soul in the process?

Ultimately, the solution to Nigeria’s energy crisis is not a mystery. Even if the Dangote Refinery delivers on its promises, Nigeria’s salvation cannot rest on the shoulders of one private company. The proper solution lies in a broader vision, including fixing the broken national refineries, building new ones, and investing in renewable energy.