Iledare Urges Reform of Nigeria's Fuel Pricing System

Professor emeritus of petroleum economics Wumi Iledare has called on the Federal Government of Nigeria to fix the fuel pricing system instead of merely adjusting pump prices. In a televised interview, he argued that the focus should be on building a competitive, transparent, and efficient downstream petroleum market.

Iledare expressed concerns about whether the current pricing mechanism works fairly, stating that high pump prices are merely the final outcome of several market forces. He explained that while removing fuel subsidies could fundamentally change the pricing mechanism, it does not eliminate economic variables that determine retail prices, such as exchange rate volatility and international crude oil prices.

Iledare criticized the assumption that domestic refining alone would lead to cheaper petrol, asserting that Nigeria's energy security cannot fully shield the country from global market forces. He advocated for targeted social interventions to protect vulnerable citizens rather than reinstating fuel subsidies, and he urged regulatory agencies to enhance market oversight and encourage private sector participation.