Obi blames fuel price volatility on Nigeria’s lack of strategic reserves

Mkpoikana Udoma

Port Harcourt — Former presidential candidate, Peter Obi, has attributed the frequent spikes in fuel prices in Nigeria to the country’s failure to build strategic petroleum reserves capable of cushioning the economy against global oil market shocks.

Obi said recent developments in the international oil market, including tensions involving Iran, demonstrate how vulnerable Nigeria remains to external economic disruptions.

According to him, the ripple effect of global events has already translated into sharp increases in domestic fuel prices.

“A few weeks ago, petrol was selling for less than N1,000 per litre, but today it costs over N1,200 per litre. Diesel, which was also priced below N1,000 per litre, is now over N1,500 per litre,” Obi said.

“These rapid increases illustrate how quickly external shocks can affect the Nigerian economy.”

He explained that many countries, regardless of whether they produce crude oil or not, maintain strategic petroleum reserves designed to protect their economies during supply disruptions or price volatility in the global energy market.

“Most countries, whether oil-producing or non-oil-producing, maintain strategic petroleum reserves to cushion against supply or price shocks,” he stated.

“This means that when there is a disruption in the global oil market, they can release part of these reserves to stabilize supply.”

However, Obi noted that Nigeria currently lacks such a buffer, leaving the country exposed to immediate impacts from international developments.

“However, Nigeria lacks such a buffer, so the impact is felt almost immediately,” he said.

The former Anambra State governor argued that the situation ultimately reflects deeper structural challenges related to long-term economic planning.

“The underlying issue is a lack of planning. Countries that engage in planning create buffers against shocks, while those that do not remain vulnerable to them,” Obi said.

He added that the lesson for Nigeria remains clear.

“The old maxim remains true: when a country fails to plan, it has already planned to fail.”

Obi concluded by reiterating his message of national renewal, saying, “A new Nigeria is possible.”