…Calls for caution on oil resumption without full dialogue with Ogoni
An energy expert and university don thinks restarting the government-owned refineries (Eleme, Warri, Kaduna), is the quick-fix approach to rising fuel prices, now close to N1,500.
Joseph Obele, a university don, said the situation at hand requires the FG to maximise every available refining capacity in the country.
Obele is a lecturer in the Department of Marketing in Petroleum Economics & Policy Studies at the Ignatius Ajuru University of Education in Port Harcourt, who is also the national public relations officer of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The energy expert said restoring functional government-owned refining capacity would increase domestic supply, reduce dependence on imported refined petroleum products and contribute to greater stability in the downstream petroleum market.
He noted that Nigeria should maximise all available refining capacity while continuing to encourage responsible private-sector investment and healthy competition within the downstream petroleum industry.
Obele has been consistent in crying out against what he terms monopoly in the industry. He has not shown any evidence that the FG was keen on local refining by its refineries over the decades, just as he has not mentioned the matter of refinery workers and industry associations that forced the FG to buy back its refineries in 2007, only to watch them return to idle state despite their loud promise of readiness to help make them work.
Obele however expressed concern over the continued rise in crude oil prices amid the ongoing tensions involving the United States and Iran and concerns around the Strait of Hormuz, warning that sustained supply risks could continue to put pressure on global petroleum prices.
He noted that Brent crude closed at about $105.83 per barrel on 16 September 2026, while WTI closed at about $102.43 per barrel.
According to Obele, the impact was already being felt in the Nigerian downstream market, with Premium Motor Spirit (PMS) reportedly selling in the range of ₦1,400 to ₦1,500 per litre in some locations, while Automotive Gas Oil (AGO) is selling above ₦2,000 per litre.
He warned that a prolonged increase in petroleum prices would have a wider economic impact, particularly on transportation, food, medical services and other essential commodities.
“The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians.”
Obele therefore urged the Federal Government and the management of NNPCL to quickly by commencing production at the Port Harcourt Refinery and Warri, stressing that restoring domestic refining capacity was critical at a time when the cost of petroleum products was becoming increasingly burdensome for Nigerians.
He said restarting the refinery before the 2027 general elections would be significant not only for Nigeria’s energy security but also for public confidence in the Federal Government’s commitment to reviving critical national assets.
Obele noted that the prolonged dormancy of government-owned refineries has had serious economic and employment implications across the petroleum value chain, affecting workers, contractors, marketers, transporters, businesses and other dependants of the sector.
According to him, a functional Port Harcourt Refinery would stimulate activities across the petroleum value chain, support employment and restore confidence among industry stakeholders. “The Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians. If the refinery is successfully restarted before the 2027 elections, it will give citizens an opportunity to assess the administration’s performance in the petroleum sector based on tangible results.”
He added that petroleum-sector workers and other stakeholders would vote based on the refinery as two million votes is anchored on the status of the government owned refineries which has directly and indirectly displaced two million citizens by impact on their employment, business activities, petroleum supply and the cost of living. “The man who is hungry will vote as hunger directs.”
Obele stressed that the 2027 elections would provide citizens with an opportunity to assess the performance of government, including its handling of the petroleum sector, refining capacity, employment and the cost of living.
“The people are looking for results. A functional Port Harcourt Refinery will restore confidence, support economic activities and demonstrated that Nigeria can utilise its own petroleum resources for the benefit of its citizens.”
He further stated that the Port Harcourt Refinery had previously recorded production activities and argued that the focus should now be on resolving operational challenges and returning the facility to sustainable production.
“The time to restart the Port Harcourt Refinery is now. Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available. Every viable refinery should be optimally utilised in the national interest.”
The don emphasised that the objective should not be to undermine private-sector refineries but to ensure that all viable refining assets—government and private—contribute to national energy security, adequate supply and a competitive downstream petroleum market.
Ogoni oil exploration:
On the vexed issue of Ogoni oil return, Obele, an indigene of Eleme in Ogoni, called on the FG to adopt an all-inclusive, peaceful and people-centred approach to the planned resumption of oil exploration activities in Ogoniland.
Obele said the successful resumption of oil exploration in Ogoni required genuine consultation, inclusiveness and adequate attention to the legitimate concerns and demands of the people.
He stressed that the process should be built on dialogue, trust, transparency and logical strategies, rather than approaches that could create further tension or undermine the confidence of host communities.
“All-inclusiveness and attention to the demands of the people are key to the successful resumption of oil exploration in Ogoni. Selective political interference, logical strategies or military might should not be the option.”
Obele maintained that the people of Ogoni should be treated as critical stakeholders in decisions concerning oil exploration, environmental restoration, community development and the economic benefits arising from petroleum activities in the area.
He called on the Federal Government, Rivers State Government, traditional institutions, host communities, regulatory agencies, prospective operators, civil society organisations and other relevant stakeholders to prioritise meaningful engagement and the peaceful resolution of outstanding concerns.
He further emphasised that any renewed exploration programme should provide a clear framework for environmental protection, remediation, host-community development, employment, economic participation and sustainable benefits to the people of Ogoni.
According to him, the resumption of oil exploration should be approached as an opportunity to build a new relationship between the government, operators and host communities based on mutual respect, transparency, environmental responsibility and sustainable development.
Obele therefore urged the Federal Government to tread with care, listen to the people and ensure broad stakeholder participation before and during the resumption of oil exploration in Ogoniland.
