By Emmanuella Anokam
Abuja, March 8, 2026 (NAN) A renowned economist, Dr Chijioke Ekechukwu, has urged the Federal Government to supply crude oil to local refineries at subsidised rates to cushion the impact of global supply disruptions on domestic petroleum product prices.
Ekechukwu, the Managing Director/Chief Executive Officer of Bristol Investments Limited said this on Sunday in Abuja in an interview with the News Agency of Nigeria (NAN).
He was reacting to the middle-east crisis and global tensions for the energy sector, particularly Nigeria’s petroleum industry.
The recent tensions involving the U.S., Iran, Israel and allied nations, including hostilities particularly around the strategic Strait of Hormuz has intensified geopolitical pressure and significantly disrupted energy markets and supply chains.
The economist said that in a deregulated petroleum products market, prices were largely determined by global demand and supply dynamics.
According to him, the tensions, which have triggered supply distortions across the Gulf region, naturally pushed international oil prices upward due to fears of reduced supply from major crude oil producing countries.
He said that such geopolitical crises usually led to market volatility and higher prices, as key suppliers of crude oil were affected by the instability.
To mitigate the impact on Nigerians, Ekechukwu advised the Federal Government to prioritise domestic energy security by supplying crude oil to local refineries at discounted rates.
He said the arrangement would enable refineries to process and sell petroleum products locally at relatively stable prices, while Nigeria continues to export crude oil at prevailing international market rates.
“In the case of the U.S.-Iranian war, which culminated in supply distortions around the Gulf countries, prices will automatically react to a shortage of supply.
“Prices, therefore, are expected to rise because major crude oil suppliers are in crisis.
“For the Federal Government therefore to cushion the effect of this supply distortion, which has affected the global price, we should supply crude oil to our local refineries at subsidised prices to refine and sell at regular prices,” he said.
He added that with its massive refining capacity, the Dangote Refinery was capable of meeting a significant portion of Nigeria’s domestic demand for refined petroleum products, thereby reducing dependence on imports.
He further emphasised the need for stricter border controls to prevent the smuggling of refined petroleum products out of the country, warning that weak enforcement could undermine efforts to stabilise local prices.
According to him, tightening border security alongside targeted crude supply to domestic refiners will ensure that the benefits of the policy are retained within the country and shield consumers from sudden price hikes. (NAN)(www.nannews.ng)
ELLA/EMAF
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Edited by Emmanuel Afonne
