Agbakoba Proposes N400 Petrol, Urges Subsidy Rethink

Former President of the Nigerian Bar Association NBA, Mr Olisa Agbakoba, has called for a rethink of Nigeria’s petroleum pricing policy, proposing a separate domestic crude price that could bring petrol down to about N400 per litre.

Agbakoba made the proposal on Thursday in Lagos at the annual conference organised by the National Association of Energy Correspondents, where he urged presidential candidates to clearly state their positions on petrol subsidy and domestic crude pricing ahead of the 2027 general elections.

He said the high cost of petroleum products was directly linked to the rising cost of living, stressing that Nigerians needed to know how political aspirants intended to address the problem.

The former NBA president said the government could establish a different price for crude supplied to domestic refineries, irrespective of fluctuations in international crude prices.

According to him, setting the domestic crude price at about 40 dollars per barrel, even when international prices were significantly higher, could enable refiners to produce petrol at a lower cost and sell it to consumers at about N400 per litre.

Agbakoba argued that such a policy would help reduce transportation and other production costs, thereby easing pressure on households and businesses.

He urged energy journalists to educate Nigerians on the relationship between crude pricing, petrol prices and the broader cost of living, saying the issue should remain central to the national policy debate.

The lawyer also questioned the current structure of government oversight of the energy sector, arguing that the President should no longer combine the office of the Minister of Petroleum with the presidency.

He proposed the creation of a single Ministry of Energy responsible for electricity, gas and crude oil, saying the arrangement would provide a more coordinated approach to managing the country's energy resources.

Agbakoba further expressed concern about the ongoing divestment of oil and gas assets by international oil companies, warning that prospective investors should conduct adequate legal and structural assessments of the assets before completing acquisitions.

He said decisions on petroleum pricing and energy policy should be evaluated not only from the perspective of government revenue and oil companies but also by their impact on ordinary Nigerians.

His proposal comes amid renewed debate over petrol pricing, subsidy and domestic crude supply, following the Federal Government's announcement of a 30-day petrol discount through the Nigerian National Petroleum Company Limited. The government has also proposed a N1,350 per-litre ceiling on the ex-gantry or landing cost of petrol under a price-modulation mechanism.