Lokpobiri: Nigeria Would Have Been Like Venezuela Without Subsidy Removal

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has claimed that Nigeria would have been like Venezuela without the removal of the fuel subsidy by President Bola Ahmed Tinubu, stating that the decision was apt.

“Nigeria would have been like Venezuela if President Tinubu didn’t make that decision [to remove fuel subsidy] at that time. Venezuela has the highest crude oil reserves in the world but is among the poorest countries in the world.”

Lokpobiri made the comments during an appearance on Channels Television’s Politics Today, while responding to questions over the state of the country’s refineries and the government’s fuel policies.

Lokpobiri defended President Bola Tinubu’s decision to remove the petrol subsidy, arguing that retaining the policy could have pushed Nigeria towards a situation similar to Venezuela.

According to the minister, Nigeria’s petrol price remains lower than that of the United States despite the latter being one of the world’s largest crude oil producers and having a large refining capacity.

“Our [petrol] price is lower than that of the US. The United States is the highest producer of crude oil and one of the countries with the highest level of refineries.
Today the price in the US is higher than that of Nigeria.”

He acknowledged that Nigeria’s government-owned refineries are currently not producing, saying the Nigerian National Petroleum Company Limited (NNPCL) must explain the situation to Nigerians.

When asked why the Port Harcourt, Warri and Kaduna refineries were not producing despite previous assurances that rehabilitation had been completed, the minister said the situation was “very unfortunate.”

He disclosed that the government was negotiating new partnerships, including with Chinese companies, to invest in and rehabilitate the refineries.

The minister also faced questions over whether officials who previously assured Nigerians that the refineries were operational should be held accountable.

Responding, Lokpobiri said Nigerians should demand explanations from the NNPC.

“Call NNPC, tell them to come and account for it. I will tell them to come. Let them come and explain,” he said.

He maintained that the country’s downstream petroleum market is deregulated and that global oil prices influence domestic energy costs.

The minister also criticised former Vice President Atiku Abubakar over his current proposal to restore a form of petrol subsidy if elected president in 2027.

Lokpobiri argued that Atiku had campaigned in 2023 on the position that the subsidy was unsustainable and should be removed.

He described Atiku’s current position as inconsistent, saying Nigerians should not take seriously what he characterised as a political change of position.

Atiku, the African Democratic Congress (ADC) presidential candidate, has since reaffirmed that he would restore a targeted petrol subsidy if elected in 2027.