By Usman Usman Garba
Veteran labour leader, oil and gas practitioner and development advocate, Comrade Mustapha Nuhu Wali, mni, FCNA, FCCSA, has proposed a new framework for stabilising Nigeria’s petrol prices while reducing the country’s dependence on petroleum subsidy.
This was contained in a press statement signed by Wali and made available to newsmen in Kano on Tuesday, in which he unveiled a non-partisan policy document titled, “Beyond Petroleum Subsidy: A Petroleum Price Moderator and Downstream Transformation Framework for Nigeria.”
Under the proposal, he recommended the establishment of a Petroleum Price Moderator (PPM) operating within a transparent price corridor.
He proposed that when international crude oil and petroleum product prices are favourable, a defined contribution should be made into a ring-fenced stabilisation reserve. When prices rise sharply beyond predetermined thresholds, the reserve would be used to moderate part of the temporary price shock.
“This is not a return to the old subsidy regime. It is a counter-cyclical stabilisation mechanism designed to protect consumers from exceptional shocks while Nigeria tackles the structural causes of high petroleum costs,” he said.
Wali argued that Nigeria’s petroleum pricing challenge could not be addressed simply by determining what government should pay as subsidy, stressing the need to examine the entire petroleum value chain.
He called for a line-by-line forensic review of the petroleum pricing template covering crude oil supply, refining, freight, foreign exchange, financing, pipelines, storage, depots, transportation and distribution.
According to him, the review should identify costs that are unavoidable, excessive, reducible, eliminable or capable of regulatory control.
On domestic crude oil supply, Wali said qualified domestic refineries should have predictable access to crude oil under transparent commercial rules, with clear provisions for allocations, pricing, delivery obligations, crude quality, measurement, dispute resolution and penalties for non-performance.
He said domestic crude oil was not free, but where local supply eliminates avoidable freight, handling or logistics costs, the savings should be transparently reflected in the commercial structure.
Wali also proposed the transformation of Nigeria’s petroleum infrastructure, particularly pipelines, depots and storage facilities, to improve efficiency and reduce petroleum product distribution costs.
He noted that the Nigerian National Petroleum Company Limited’s corporate structure includes the Nigerian Pipeline and Storage Company Limited (NPSC), arguing that the country’s legacy pipeline, depot, storage and related infrastructure should be made to deliver its full economic potential.
He proposed that NPSC be transformed into a professionally managed national petroleum infrastructure operator, with qualified market participants granted transparent and non-discriminatory access to strategic infrastructure.
“Ownership ≠ monopoly access,” Wali said, stressing that efficient pipelines and storage facilities could reduce dependence on long-distance trucking, repeated handling and unnecessary logistics costs.
On refining, the proposal calls for independent technical and commercial assessments of NNPCL refineries and, where viable, transparent partnerships with competent private investors, international refinery operators, technical companies, infrastructure investors and development finance institutions.
Wali said operational control should be based on capital commitment, technical competence and measurable performance rather than political considerations.
He also proposed a structured Domestic Refining and Energy Security Participation Framework for major international oil companies and upstream producers, covering refinery investment, rehabilitation, technical operations, crude oil supply, storage, pipeline infrastructure, downstream investment, financing and technology transfer.
Wali further proposed that once the stabilisation reserve reaches an established threshold, surplus resources could support commercially viable downstream infrastructure through repayable financing, potentially at single-digit interest rates where financially and legally feasible.
Priority areas would include pipelines, storage facilities, petroleum depots, LPG infrastructure, strategic petroleum reserves, refinery rehabilitation, terminals and petroleum product evacuation infrastructure.
“This way, Nigeria will not simply spend money to reduce today’s petrol price. We will invest in reducing tomorrow’s petroleum cost,” he said.
Wali said the broader objective was to transform Nigeria from a predominantly import-dependent petroleum market into a competitive regional refining and petroleum supply hub.
According to him, adequate refining capacity, reliable crude oil supply and functional pipelines, storage and distribution infrastructure would enable Nigeria to supply petroleum products to neighbouring West African markets while creating employment, export opportunities and stronger regional energy security.
He emphasised that the proposal was strictly non-partisan and did not constitute an endorsement of any political party or presidential candidate.
Wali said he had made the proposal available for consideration by presidential candidates and national policymakers ahead of the 2027 general elections.
He challenged the political leadership to articulate a sustainable petroleum pricing and downstream industrialisation model beyond subsidy and short-term political interventions.
“What is your sustainable petroleum pricing and downstream industrialisation model for Nigeria beyond subsidy and short-term political interventions?” he asked.
Wali concluded: “Nigeria should not subsidise inefficiency; Nigeria should invest in eliminating inefficiency.”