Energy expert, Nick Agule has questioned Nigeria’s reliance on international oil price benchmarks for domestic petroleum pricing, arguing that the policy places a disproportionate burden on Nigerians whose incomes remain far below those of consumers in advanced economies.
In an opinion piece dated October 13, 2026, Agule challenged the argument that domestic petroleum prices must automatically reflect international market movements, insisting that local production costs, purchasing power and prevailing economic conditions should also influence pricing decisions.
Using the example of yam prices in Benue State and Lagos, he argued that market forces operate differently across locations because of variations in supply, transportation costs, traders’ margins and consumers’ purchasing power.
Agule cited Zaki-Ibiam, one of Benue State’s major yam markets, where a tuber could sell for ₦500, compared with ₦2,500 in Lagos due to differences in market conditions.
He argued that a supply disruption in Lagos that pushed the price to ₦5,000 would not automatically justify imposing the same price on consumers in Zaki-Ibiam, where local production and purchasing power differed.
“Is that what we call market forces? Which market forces?” he asked, using the analogy to challenge the application of international oil pricing principles to Nigeria’s domestic market.
Agule maintained that although crude oil is traded internationally, domestic petroleum pricing also involves production costs, transportation, refining expenses, taxes, exchange rates and the structure of the local market.
He questioned why global price movements should automatically determine domestic prices without a thorough assessment of these factors.
“Why should global price movements automatically dictate domestic prices without a serious examination of these factors? Why is oil treated differently from other commodities?” he asked.
The energy expert argued that the issue was not whether Nigeria should recognise international market realities, but whether the pricing framework adequately reflected the country’s economic circumstances.
According to him, a system that passes international price shocks directly to domestic consumers without corresponding improvements in income could deepen affordability challenges.
Agule also highlighted the disparity between the earnings of Nigerian workers and those of their counterparts in the United Kingdom, questioning the fairness of subjecting consumers with vastly different purchasing power to internationally benchmarked petroleum prices.
He cited a Nigerian monthly minimum wage equivalent of £35 and a UK minimum-wage rate of £12.71 per hour to illustrate the income gap.
Using those figures, he argued that a UK minimum-wage worker could earn in approximately three hours what a Nigerian worker earns in a month.
The comparison, he said, raised questions about the implications of internationally benchmarked petroleum prices for affordability and household welfare in Nigeria.
Agule stressed that his argument was not a call to disregard economic principles, but for greater consistency and transparency in applying market pricing.
“Nobody is arguing that economics should be suspended. The question is whether the principle of market pricing is being applied consistently, transparently, and with due regard to the realities of the domestic economy,” he said.
The energy expert argued that when domestic consumers bear the impact of global oil price increases while their incomes remain comparatively low, policymakers should examine whether the existing framework distributes the burden equitably.
He described the arrangement as potentially resembling “command economics dressed in the language of market forces,” arguing that the policy choices underpinning petroleum pricing deserved closer scrutiny.
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Agule called on Nigerian policymakers to develop an oil-pricing framework that balances international market conditions with domestic production costs and consumers’ purchasing power.
He maintained that Nigeria’s natural resources should deliver meaningful benefits to citizens rather than expose them disproportionately to global price volatility.
He also pointed to developments in the Strait of Hormuz as a potential catalyst for reconsidering conventional approaches to global oil pricing.
According to him, oil-producing countries should challenge the assumption that petroleum must command the same globally benchmarked price regardless of where it is produced, the cost of production or the purchasing power of consumers.
Agule said a revised framework should recognise national economic realities while ensuring that resource-producing countries and their populations derive tangible benefits from their natural resources.
His argument places the debate over petroleum pricing at the intersection of global commodity markets, domestic energy policy, household affordability and the economic benefits citizens derive from a country’s natural resources.
