Agbakoba Proposes Domestic Crude Pricing Model to Target N400 Petrol

Former Nigerian Bar Association President Olisa Agbakoba has proposed a separate pricing arrangement for crude oil supplied within Nigeria, arguing that such a policy could reduce petrol prices to about N400 per litre.

Agbakoba presented the proposal in Lagos at the annual conference of the National Association of Energy Correspondents. Rather than tying crude supplied to the domestic market entirely to international prices, he suggested establishing a lower local price differential. He gave an example in which crude could be priced at about $40 for domestic use even when the international market price is significantly higher, saying this could translate into cheaper petrol for Nigerian consumers.

The Senior Advocate of Nigeria connected the proposal to the pressure households and businesses face from high energy costs. He argued that petroleum pricing has wider consequences for the cost of living and called on energy journalists to help the public better understand how crude pricing decisions affect fuel prices and everyday expenses.

Agbakoba also wants presidential candidates contesting the 2027 election to clearly state how they would approach fuel subsidy and domestic crude pricing. He acknowledged President Bola Tinubu's removal of the previous subsidy arrangement and agreed that the former system had problems with corruption, but argued that ending that model should not prevent policymakers from considering a different mechanism for making domestically consumed petroleum more affordable.

His N400 proposal remains a policy recommendation rather than an announced government measure or an established future pump price. Agbakoba said his preferred approach would distinguish between crude sold for the Nigerian market and barrels priced for international buyers. He cited national interest as the basis for providing domestic consumers with more affordable petroleum products.

Beyond fuel prices, Agbakoba questioned the present structure of federal energy administration. He argued that Nigeria's president should not simultaneously serve as petroleum minister and proposed bringing electricity, gas and crude oil under a single Ministry of Energy.

He also raised concerns about the transfer of oil and gas assets from international companies to new investors. Agbakoba warned that buyers could face serious problems if they acquire assets without sufficiently examining the legal and structural conditions attached to them. He compared that risk with difficulties previously encountered in Nigeria's electricity distribution sector and urged investors to conduct proper legal inquiries before proceeding with acquisitions.

Agbakoba's intervention placed household affordability alongside broader questions of energy-sector governance. His position is that debates about crude pricing and petroleum policy should consider their effects on consumers and businesses, while political candidates should explain the choices they would make if elected.