As global tensions shake oil markets, an energy expert is warning Nigeria—keeping fuel flowing matters more than fixing prices.
Energy economist Wumi Iledare has advised the Federal Government to prioritise stable fuel supply over price control, saying it’s the key to economic stability amid global oil market disruptions.
Speaking in Lagos, Iledare warned that trying to artificially suppress fuel prices could distort the market and create bigger long-term problems.
“With rising geopolitical tensions, supply security is more critical than price control,” he said, urging government to strengthen supply channels through flexible imports, better forex access, and clear regulations.
He noted that stop-gap measures like crude-for-naira deals and structured imports can help cushion shocks—but only if they are transparent, time-bound, and not disguised subsidies.
According to him, a deregulated market still needs strong oversight to ensure fairness, competition, and protection for vulnerable citizens.
“A deregulated market is not a lawless market,” he stressed.
Iledare also highlighted the importance of local refining, pointing to projects like the Dangote Refinery as critical to reducing import dependence—but warned against relying on a single source.
“Keeping imports open ensures competition and reduces supply risks,” he added.
He further raised concerns over rising diesel costs, noting that many Nigerian industries depend on it for power, making production more expensive.
To ease the pressure, he recommended targeted support such as tax relief on energy inputs, improved gas-to-power supply, and better logistics.
Overall, he urged policymakers to strike a balance—ensuring steady supply, fair competition, and consumer protection without rolling back key reforms in the oil sector.
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