In a resounding statement made at the All Nigeria Editors Conference in Yenagoa, Bayelsa State, Nduka Obaigbena, Chairman and Editor-in-Chief of THISDAY Media Group and ARISE News Channel, presented a bold vision for Nigeria’s oil industry. He issued a rallying cry, urging the Federal Government and Nigerian National Petroleum Company Limited (NNPCL) to bring Nigeria’s four government-owned refineries back to operational status, not just to rejuvenate the sector but to dismantle the monopolistic grip of so-called “oil mafias.” Obaigbena’s words come at a time when Nigeria’s oil sector is at a crossroads, plagued by corruption, inefficiency, and foreign monopoly control, with devastating repercussions on the economy and the Nigerian populace.
Nduka Obaigbena challenges the Nigerian government to combat oil mafias by revamping refineries. November 7, 2024.
The State of Nigeria’s Oil Industry: A System on the Brink
Nigeria is Africa’s largest oil producer and one of the top exporters globally. However, its refining capacity is sorely lacking, compelling the country to rely on imports to meet its domestic fuel needs. In a highly ironic twist, despite having four state-owned refineries, Nigeria is forced to pay exorbitant costs to import refined petroleum products. This dependency has led to a dangerous monopolisation of the sector, with certain powerful entities wielding influence over fuel supply, pricing, and availability.
Nigeria’s failure to produce refined oil domestically is not merely an issue of economic inefficiency but is also a national security and sovereignty concern. These “oil mafias” that Obaigbena references thrive in an ecosystem where public sector inefficiencies have allowed private interests to infiltrate every level of the supply chain, creating an environment ripe for exploitation. The call to revive government refineries, and make them compete with private enterprises like the Dangote Refinery, is not just about economics; it is a strategic imperative to regain control of Nigeria’s resources.
Why Refineries Must Be Operational: Beyond Competitiveness
Obaigbena’s plea to make Nigeria’s four government-owned refineries functional again carries more weight than a simple policy recommendation. Bringing these refineries back online would symbolise a break from the dependency on foreign-refined petroleum products, a dependence that is heavily implicated in the soaring inflation, cost-of-living crises, and social instability that Nigeria currently faces.
To illustrate the potential benefits:
Job Creation and Industrialisation: Operational refineries could catalyse job creation in the country, which is battling unemployment rates among the highest in the world.
Price Stability: With local refineries active, Nigeria would be less vulnerable to global oil price fluctuations, which presently dictate domestic fuel prices.
National Security and Self-sufficiency: Functional refineries would strengthen Nigeria’s energy security, reduce the need for foreign exchange to import refined products, and ultimately assert Nigeria’s independence in energy.
In this vein, Obaigbena’s call underscores the urgency to break away from the chokehold of oil cartels and mafias that profit from the inefficiencies in Nigeria’s energy sector, while the masses suffer the consequences.
Obaigbena’s Call for Competition: A Step Toward Industry Reform?
By challenging the government to restore these refineries and pit them against the Dangote Refinery, Obaigbena has highlighted a crucial gap in the Nigerian oil sector—the lack of competitive domestic refining options. Currently, Dangote Refinery, when fully operational, would have the capacity to supply much of Nigeria’s fuel demands. However, if it becomes the primary supplier, it risks becoming a monopoly, albeit a domestic one.
Obaigbena’s suggestion to create competition among refineries, with NNPCL-managed refineries as viable contenders, reflects a pragmatic approach to foster industry resilience. If these refineries are competitive, they could encourage efficiency and fair pricing, shielding Nigerians from price gouging.
Ministerial Responsibility and Accountability: The Need for Policy Execution
Directing his statement at the Minister of Information and leading officials like Bayo Onanuga, Obaigbena emphasised the need for government officials to be held accountable for revitalising the nation’s oil infrastructure. Given the recurrent government promises of refinery revival that have largely failed to materialise, there is a pressing need for clear policies and accountability frameworks to ensure these reforms are not just rhetorical exercises.
For the Tinubu administration, a commitment to making these refineries operational would validate its economic reform agenda and send a message that it is serious about tackling the deeply ingrained issues plaguing Nigeria’s oil sector. With stakeholders like Obaigbena openly urging these measures, public pressure mounts on the administration to follow through with tangible action.
The Role of Media in Oil Sector Reform: Championing Accountability
As highlighted by Obaigbena, the media has a pivotal role in advocating for change and holding power to account, especially in a sector as rife with opacity as Nigeria’s oil industry. The Nigerian media has often operated under considerable constraints, including political pressures, economic challenges, and issues surrounding resource allocation. Nevertheless, it has remained a critical force in shining a light on corruption, inefficiencies, and the need for systemic reform.
According to Eze Anaba, the President of the Nigerian Guild of Editors, the media’s ability to play this role is under severe threat due to economic challenges, particularly the availability of resources. This situation places a double burden on media houses—pushing them to innovate and adapt to changing trends while grappling with the limitations imposed by financial instability. Yet, as Chief Olusegun Osoba, former governor of Ogun State, emphasised, it is imperative that Nigerian media remains a unified body to sustain its influence and credibility in national discourse.
Economic Mismanagement and Oil Revenue: The Perspective of Stakeholders
Dele Kelvin Oye, President of the National Chamber of Commerce, Industry, Mines, and Agriculture, laid out a troubling assessment of Nigeria’s oil resource management, adding to the chorus of voices calling for structural reforms. His insights highlight how poorly managed oil revenues and a chaotic exchange rate policy have fuelled economic distress across sectors.
The lack of stakeholder engagement in policy-making, as pointed out by Oye, is a recurring issue that has hampered the effectiveness of government initiatives. Without input from those directly impacted by policies, such as industry players and local communities, efforts to reform the oil sector risk being superficial and detached from the realities on the ground.
A Roadmap for Reform and the Role of Journalistic Advocacy
Obaigbena’s call to action encapsulates a larger narrative—the need to dismantle a corrupt system that benefits a few at the expense of millions. Nigeria’s oil industry, long exploited by elite networks and foreign interests, stands as a testament to what is wrong with the nation’s management of its resources. However, Obaigbena’s statement offers a glimmer of hope, suggesting that, with strong leadership and accountability, the sector can be reformed.
To respond to this urgent call for reform:
Accountability in Leadership: Nigerian officials must be made to deliver on promises. Ministerial oversight of the refineries should be transparent and results-driven.
Strengthening the Media’s Role: As the watchdog of society, the media must be supported to continue its essential work without compromise. This will require a concerted effort from media organisations, policymakers, and the private sector.
Collaborative Policy-making: Policy decisions must involve those affected. Industry stakeholders, including experts, labour unions, and civil society, should have a voice in decisions that impact the nation’s oil sector.
Public Engagement: Nigerian citizens should be active participants in demanding accountability from their leaders, with the media as a platform for mobilisation and information dissemination.
Obaigbena’s challenge to “battle the oil mafia” is not merely a call for operational refineries; it is a clarion call to revive Nigeria’s sense of national ownership over its resources, restore integrity in leadership, and realign the nation’s path toward a future where its natural wealth truly serves its people. For Nigeria, this is more than a policy debate—it is a fight for its very sovereignty and future.
Final Thoughts
The struggle for accountability, transparency, and functionality within Nigeria’s oil sector will determine the country’s economic destiny. Obaigbena’s words resonate as a powerful reminder that for Nigeria to thrive, it must break free from the clutches of the oil mafia and reclaim control over its energy resources. The government, media, and citizens must collectively push for a system that benefits all Nigerians, ensuring that the country’s wealth is used to fuel not only cars and industries but a broader, more inclusive prosperity.