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By Vivian Onyebukwa
Austine Ikubese is a Nigerian entrepreneur and the MD/CEO of Joyce International Ventures.
In this interview, he spoke about problems created in the Nigerian petroleum sector as a result of the raging war in the Middle East. Ikubese also advocated certain measures as permanent solutions to the incessant price hike in the Nigeria oil sector.
How has the US/Israel versus Iran war affected Nigeria’s oil market and its citizens?
The US/Israel and Iran war is supposed to be more money for Nigeria as the prices of crude oil is rising in the international market. Unfortunately it’s turning out to be a big hardship to Nigerians, which is not supposed to be. We hope it ends so soon to reduce the amount of destruction the war is causing the world.
As a result of increase in petroleum pump price, President Bola Ahmed Tinubu ordered deployment of 100,000 CNG conversion link to ease the effect. How do you react to this?
The President’s order to deploy 100,000 CNG Conversion Link is like a drop of water in the ocean. How many vehicles have you seen queuing for this conversion? Even if they do, would you say the price of gas wouldn’t be affected? Or how would people power their generators for power supply, as majority of Nigerians can’t afford the cost of solar energy. This is obviously not a solution to the increase in petroleum pump price.
What other measures do you think that the President can use to cushion this effect?
As I said in my open appeal letter to The President, Bola Ahmed Tinubu which was published online sometime ago, I suggested that the government should strike a deal with Dangote, find out how much crude oil Nigeria needs to produce PMS, AGO and Jet A 1 for local consumption in Nigeria only, per day. Then put a benchmark on it for N100, 000 per barrel, while Dangote’s refined products for export should still maintain the naira equivalent for current dollar price in the international market. I went further to suggest security measures to avoid sabotaging this process or plan. I also suggested reviewing the petroleum act. I think the President just appointed Task Force for that.
I also suggested that 30 per cent of crude oil for local consumption should be allocated to Dangote to be refined for local consumption in Nigeria at a reduced price in naira, while 70 per cent for export by Dangote should also be in naira but dollar equivalent on current price in the international market. This was in my interview with The Sun Newspapers in January 2024 when I was the first or among the first to advocate the crude to Naira, which absolutely had been a game changer in this administration when five months later in May 2024, the President approved the crude for naira for Dangote. We commend his decision on that.
Talking about the Middle East tension, the federal government has ruled out petrol price control. What do you think about this?
It’s time Nigeria looked inwards to change certain policies tying our local economy to what happens outside the world, so that when the prices of crude oil goes up in the international market as an oil producing country, it should be a blessing, not just to Nigerian government but to her citizenry too.
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How about the surge in global oil price? Is it an advantage or disadvantage to Nigeria?
Surge in global oil price as a result of war, though we don’t pray for it, but when it comes, it should be an advantage to Nigeria if my suggestions are considered as a solution, and changes made on the Petroleum Act. Considering the war going on in the Middle East for some time now, our crude oil was literally raised from 87 dollars to well over 100 dollars per barrel. This means that Nigeria is making more money while the Premium Motor Spirit (PMS) pump price and that of diesel and Jet A I are increasing rapidly. Sadly, this major shift in pricing is taking a serious toll mostly on the vulnerable segments of the Nigerian population. This is equally affecting the gains made recently by the government that brought down the prices of food items like 50kg bag of rice in 2024 from N120,000 to about N60,000 this past December. Hence, there is need for urgent review of existing price template to stem the tide of the perceived economic downturn.
We are in a pre-election year. We must not lose the gains made because of war in the Middle East, which we are not sure it will end anytime soon.
What is the permanent solution to drastically reduce the high cost of living and the petroleum pump price rising on daily basis?
The permanent solution to drastically reduce the high cost of living and the petroleum pump price is to put a benchmark on our crude oil as suggested to Dangote for N100, 000 per barrel for only local consumption. That will be about 80 dollars per barrel. I can assure you that petroleum pump price will drop as low as N500 for diesel, to about N800 for Jet A I. It will be cheaper whereby reducing the price of flights locally, even on international routes operating by our indigenous flights. This will certainly improve the economy and more jobs will be created. The President has the will power to do it. I am pleading with him to give this to Nigerians as his ‘City Boy Campaign’ strategy to win his re-election in 2027, not palliatives that would not reach the people, or they would eat and be hungry again.
The government should equally find out how many barrels of crude oil Nigeria needs for our local consumption for PMS, Ago, and JET A 1 per day. Once this is established, then our crude oil can be benchmarked at N100, 000 per barrel to Dangote refinery to refine for local consumption only in Nigeria, while the crude oil refined for exports by Dangote refinery will still maintain the equivalent of current dollar rate in Naira, just like I earlier mentioned.
More so, the government should be sure that there is adequate supply of the amount of crude needed to Dangote for local consumption only in Nigeria on a daily basis.
Again, making sure that there are trackers in all the trucks or baggies carrying the finished products specially made to be distributed in Nigeria only for domestic, industrial and commercial consumption.
It is also my humble advice that the government should involve the Economic and Financial Crimes Commission (EFCC), Nigeria Security and Civil Defense Corps (NSCDC), Civil Society, and Department of Security Service (DSS) for proper monitoring and accountability of these products to be sure that they don’t go out of the borders of Nigeria.
Also, a strong jail term should be spelt out for anyone caught in any act of economic sabotage.
Bold leadership is required to steer Nigeria towards a future where affordable fuel is a reality. With the right policies, commitment, and political will achieving fuel prices at a considerable and affordable rate is not only possible, it is within reach.
