Tinubu’s Ascent to Heroism in the Energy Sector

If there is one leader capable of adopting these proposed strategies, it is President Tinubu, who has shown the willingness to embrace innovative solutions rather than relying on outdated policies that do not favor the populace. Having served as a senator, governor, and now president, he has the opportunity to leave a meaningful legacy, potentially earning him the title of 'Hero' if he responds positively to this call for action.

Given the current state of Nigeria’s development, especially amid the financial struggles citizens are facing, government officials might need to contemplate radical approaches to alleviate the burden on the populace.

Frequent comparisons between Nigeria and other nations, particularly by politicians, seem misplaced. When workers are forced to allocate 50% of their earnings to transportation, it lacks validity to counter their concerns by referencing costly transport rates in London, especially since local wages and amenities starkly differ. Similarly, citing the cost of petrol at $1.13 per liter in the United States (roughly N1,566) overlooks the myriad variables that set Nigeria apart.

It would be kind to think that the ruling class is oblivious to the fact that they will ultimately gain when their content constituents respond with overwhelming votes of gratitude for their efforts.

Often, hope is nearly extinguished for citizens witnessing such absurdities as those reliant on rivers left to wash their faces with saliva. A nation blessed with 37.5 billion barrels of crude oil finds itself importing refined oil from America. Contrary to previous assumptions, the murky waters of the petroleum industry persist, as local refineries such as those operated by Dangote are reported to depend on imported crude to function.

In a classic instance of mismanagement, Nigeria is rumored to have pledged a large portion of its 1.5 million barrels per day (bpd) output to creditors, leaving insufficient supply for domestic refineries. Meanwhile, a naira-for- crude initiative was launched in 2024, lauded by several analysts as a progressive step that enables local refineries to procure crude in Naira instead of dollars, lessening the regular foreign exchange complications.

When the Dangote Refinery commenced operations, many believed it would provide much-needed remedies to these challenges. However, it faced challenges soon after, with the government-run NNPC Ltd assuming a role as a key impediment rather than a facilitator for its smooth transition into the market. Had Aliko Dangote not been an influential figure, his enterprise may have faced significant sabotage.

The current global economic challenges, particularly due to the ongoing Gulf War, have certainly been tough on many, but the Dangote Refinery is managing to fulfill the needs of Nigerians and other countries within the continent. Prior to its establishment, Nigerians often found themselves spending long hours at fuel stations, which would ground commerce to a halt. The successful operation of this significant refinery under Tinubu’s leadership, despite ongoing obstacles, highlights a positive aspect of this administration.

In advocating for radical transformation, it is paramount for President Tinubu to shift away from the existing hyper-capitalist mindset that prioritizes profit over citizens' welfare. As someone unfamiliar with the technicalities of petroleum engineering, I believe that common sense and empathy are crucial traits for proposing constructive solutions. The energy sector presents an ideal pathway for citizens to experience government goodwill firsthand. Where there is a will, there is surely a way.

The administration should aim to expedite an initiative that increases crude production from 1.5 million barrels daily to 3 million barrels, regardless of the obstacles. This move will enable the government to allocate a certain volume of crude at half the market rate for domestic purposes. If crude is priced at $120 per barrel internationally, local refineries could access it at N695 — equating to 50% of the stated exchange rate. Costs for production and a previously agreed profit margin would follow, positioning petrol at a more manageable price for Nigerians.

This envisioned change would yield numerous benefits, particularly lower transportation costs, facilitating cheaper delivery of food and commodities. Ultimately, consumers would benefit, and the goodwill generated for the government would be substantial.

Currently, Nigeria operates nine functional refineries with a combined capacity of 975,000 bpd:

\- Dangote Refinery: Lagos (650,000 bpd)

\- Port Harcourt Refinery (Old): Rivers State (60,000 bpd)

\- Warri Refinery and Petrochemical Company: Delta State (125,000 bpd)

\- Aradel (Niger Delta) Refinery: Rivers State (11,000 bpd)

\- Waltersmith Refinery: Imo State (5,000 bpd)

\- OPAC Refinery: Delta State (10,000 bpd)

\- Duport Midstream: Edo State (2,500 bpd)

\- Edo Refinery and Petrochemical Company: Edo State (1,000 bpd)

\- Kaduna Refinery: Kaduna State (Undergoing rehabilitation)

Generally, a 42-gallon (approximately 159-liter) barrel of crude oil can yield around 19 to 20 gallons (around 72-76 liters) of gasoline at U.S. refineries, with the remaining being processed into diesel, jet fuel, and other products. The Dangote Refinery is exceptionally efficient, designed to produce between 53 million to 75 million liters of gasoline (Premium Motor Spirit) each day, equating to an annual capacity of 10.5 million metric tonnes.

Another crucial component regarding energy challenges contributing to societal unrest is electricity. No successful nation relies on individual generators for its energy supply. Similar concessions needed for petrol, diesel, kerosene, and aviation fuel must also apply to gas supplies for thermal power plants, which produce 75% to 80% of the nation's electricity.

Providing gas at discounted rates to gas turbines would resolve existing subsidy issues. Presently, citizens find it illogical that the federal government is reportedly owed massive subsidy sums by Gencos despite the consistent power shortages. This contradiction necessitates an overhaul of the current subsidy approach to create a transparent framework that can lead to increased electricity supply.

If President Tinubu proceeds with these recommendations, he should advocate for rigorous legislation ensuring severe penalties for anyone caught smuggling petroleum products into neighboring countries. All culprits must face the full consequences of their actions.

Our governance philosophy must evolve. It is the government's responsibility to guarantee that Nigerians benefit from their nation’s resources. Individuals of my generation experienced significant advantages from Nigeria, fostering a strong sense of gratitude and patriotism towards our homeland. Each nation typically subsidizes specific aspects for its citizens; Nigeria should prioritize its citizens in the same manner.

To reiterate, if any president is positioned to undertake these changes, it is President Tinubu, who has already proven his readiness to experiment with new methodologies instead of leaning on tired policies that do not favor the populace. His past experiences as a senator, governor, and leader have equipped him uniquely. What is left is for him to carve out a lasting legacy; should he consider these suggestions, he may well earn the revered designation of 'Hero'.