The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has disclosed that the pump price of petrol could fall below ₦600 per liter if the naira appreciates significantly against the dollar.
Speaking during the association’s National Executive Council (NEC) meeting in Lagos on Thursday, PENGASSAN President, Comrade Festus Osifo, attributed the surging cost of petrol to the weak naira, emphasizing that transactions in the oil and gas sector are dollar-dependent.
Osifo explained, “If the naira strengthens to less than ₦1,000 per dollar, Nigerians will see a substantial reduction in petrol prices. However, without local refining capacity and a stable exchange rate, prices could escalate to as high as ₦1,300 per liter.”
He highlighted that local refineries, including the Dangote refinery, rely on crude oil priced according to international dollar-based benchmarks, which impacts domestic fuel costs.
Addressing Nigeria’s economic outlook, Osifo criticized the recently approved 2025 budget of ₦49 trillion, describing it as inadequate given the nation’s vast resources. “The ₦49 trillion budget amounts to only $30 billion due to the current exchange rate. This is insufficient for critical infrastructure like roads and power. It’s an abysmal figure for a resource-rich nation,” he lamented.
PENGASSAN also raised alarm over persistent failures in the power sector, revealing that Nigeria experienced 12 grid collapses in 2024 alone. According to Osifo, power generation remains stuck between 3,000 and 4,000 megawatts despite substantial investments.
He attributed the sector’s inefficiency to poor leadership, citing a lack of technical expertise in key agencies like the Ministry of Power and the Nigerian Electricity Regulatory Commission (NERC). “The power sector is highly technical. Appointing individuals without the requisite skills compromises its potential. Effective reforms require competent leadership,” he said.
While commending the federal government’s efforts to decentralize the power sector, Osifo emphasized the need for strategic leadership to maximize these reforms and ensure sustainable energy solutions.
