Nigerians Should Count Themselves Lucky for Domestic Oil Refining Abilities, Says Federal Government Amidst Rising Fuel Costs

Minister of Finance Wale Edun has come out in defense of the recent surge in petroleum product prices, attributing the hike to market realities and encouraging Nigerians to appreciate the country's newfound capacity for local crude oil refining.

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Edun's remarks were made during an exclusive interview on Channels Television's Politics Today, which aired on Wednesday, as fuel costs continue to climb and exert pressure on the everyday lives of Nigerians.

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The minister emphasized that the current market price for petroleum products is a direct result of a mechanism introduced by the President, which had been lacking for a long time, and cautioned that this is a two-way street, not a one-way affair.

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Edun cited the Dangote Refinery's recent price adjustments as proof that the market mechanism is functioning as intended, pointing out that the refinery reduced prices from around 1,200 naira to just over 1,000 or 1,050 naira.

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The minister highlighted the significant role that the Dangote Refinery, Africa's largest, is playing in underpinning Nigeria's economic resilience, particularly given its capacity to produce 650,000 barrels per day and having begun petrol production in 2024.

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According to Edun, the Nigerian economy's resilience is largely due to the private sector investment made by Alhaji Aliko Dangote in refining, and he emphasized the need to support local refiners to maintain the flow of petroleum products.

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Edun expressed gratitude for Nigeria's capacity to refine crude into petrochemicals and petroleum products, a sentiment he believes Nigerians should share, especially at this time.

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The Dangote Refinery had previously raised petroleum prices three times in response to rising global crude oil prices driven by the Middle East conflict, before subsequently reducing them due to a decline in global crude benchmarks.

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Despite acknowledging the impact of global uncertainties on the economy, Edun remained optimistic about the country's economic outlook, stating that Nigeria is on its way out of difficult times and can see a positive future ahead as long as it stays the course.