Nigeria’s Energy Crisis: A Fuel Hike Or A Broken System?

The Deepening Nigerian Energy Crisis

Nigeria is currently grappling with a severe energy crisis, one that goes beyond rising fuel prices. Citizens face a shortage of fuel for vehicles, generators, and kerosene for cooking. This is as  steady electricity remains a distant dream. The nation is crippled by an unreliable energy system, affecting food production and daily life.

“The fuel prices keep going up, but nothing is improving for ordinary Nigerians,” laments Ayodele, a Lagos-based bus driver, who spends more on fuel than ever before.

At the heart of this issue lies a dysfunctional supply chain, worsened by corruption and inefficiency. Since the 1970s, when fuel was just 6 Kobo per liter, the price has skyrocketed to N1,300 today. This exponential increase highlights the failure of the Nigerian state to manage its resources effectively.

A History of Rising Fuel Prices

The price of fuel in Nigeria has been rising for decades. Despite this, there has been little progress in other essential areas such as electricity generation, public transportation, or healthcare. This disparity disproportionately affects poor Nigerians, who are asked to buy fuel at the same price as the wealthy.

“Why should I pay the same as someone who drives a luxury car?” asks Mary, a small business owner in Port Harcourt. “I can barely afford to keep my shop open.”

This unfair burden creates a wider gap between the rich and the poor, exacerbating inequality across the country. While the wealthy can weather the storm of rising fuel prices, the average Nigerian struggles to make ends meet.

Managing the Nigerian Energy Crisis

So, what is the way out? The Nigerian energy crisis is largely a downstream issue, revolving around refining and distribution. The country lacks sufficient refineries to process its vast oil reserves, forcing it to import refined products. As many have pointed out, the solution lies in building more refineries.

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“If we can refine our oil locally, we wouldn’t need to import fuel,” says energy analyst Usman Abdul. “The corruption in the system is what keeps us importing fuel, enriching a few at the expense of millions,” he added.

Nigeria can also learn from countries like South Africa, which has successfully developed oil-from-coal technology. With its abundant coal reserves in Enugu, Nigeria could utilize similar methods to become more energy self-sufficient.

Exploring Natural Gas and Solar Energy

One of the few positive steps taken so far is President Tinubu’s partnership with Innoson Vehicle Manufacturing to develop mass transit buses powered by Compressed Natural Gas (CNG). Given that Nigeria is rich in natural gas, this initiative could be expanded to enable other automobil factories and other industries key into it.

In addition, Nigeria’s access to silicon and cobalt could propel the nation into the era of renewable energy by producing solar panels and batteries locally. This would reduce dependency on fuel, which is increasingly expensive.

“Why are we still stuck in the past?” asks environmentalist Tunde Okonkwo. “With our resources, we should be leading Africa in renewable energy.”

Prioritizing Electricity Over Fuel

One of the most critical issues that needs addressing is Nigeria’s unreliable electricity supply. Building over 200 thermal electricity plants could be a game-changer, powering homes and industries alike. As it stands, nearly 40% of the fuel in Nigeria is consumed by generators. With steady electricity, this demand would plummet, driving down the price of fuel.

“Electricity is our biggest problem,” says market trader Chika, whose generator hums constantly. “If we had power, we wouldn’t need to worry so much about fuel.”

Agriculture and Food Energy: An Overlooked Crisis

Beyond fuel and electricity, Nigeria faces a food energy crisis. The country’s focus on expensive pilgrimages, like the N90 billion spent on religious trips in 2024, contrasts sharply with its neglect of mechanized agriculture. For Nigeria to achieve food self-sufficiency, it must invest in farming settlements, agricultural machinery, and support for farmers.

“There’s no reason for us to be importing food when we have fertile land and resources,” says agronomist Femi Ajayi. “We need to prioritize agriculture.”

A Broken System: The Root of the Crisis

At the core of the Nigerian energy crisis is a deeply broken system. Instead of focusing on building refineries or improving energy infrastructure, the government and other key bodies are entangled in endless discussions about fuel subsidies.

“Our leaders are stuck in a loop,” says activist Ngozi Onyekachi. “They argue about subsidies, but they never tackle the real problems.”

As the National Assembly and the Nigerian National Petroleum Company Limited (NNPCL) bicker over fuel prices and subsidies, the Nigerian people continue to suffer. The time spent on these debates could be better used to build new refineries, improve transportation, and develop other sectors.

Fuel Prices Are Not the Problem

If President Tinubu truly wants to solve Nigeria’s energy crisis, he must look beyond fuel prices. Building infrastructure, mechanizing agriculture, and expanding renewable energy should be top priorities. Nigerians might be willing to pay higher fuel prices if they saw improvements in other areas, such as electricity, healthcare, and transportation.

“We don’t mind paying more for fuel,” says Abuja resident Musa. “But what are we getting in return? Right now, nothing.”

In summary, the solution to Nigeria’s energy crisis lies not in regulating pump prices but in developing the infrastructure that serves the broader population. Until then, the energy crisis will persist, and ordinary Nigerians will continue to bear the brunt of a broken system.