‘Nigerian businesses spent N2trn on diesel in 2 months’

The Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has differed with the Federal Government on the celebration of recent energy sector reforms, noting that while the figures brandished by the government was an illusion, the average Nigerian continues to suffer from expensive fuel, unreliable electricity, and rising production costs. Oye […]

The Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has differed with the Federal Government on the celebration of recent energy sector reforms, noting that while the figures brandished by the government was an illusion, the average Nigerian continues to suffer from expensive fuel, unreliable electricity, and rising production costs.

Oye who was responding to a 13-page report by the office of the Special Adviser to the President on Energy released titled “Nigeria’s Energy Sector Reforms: A Three-Year Review (2023–2026),” highlighting the progress in Nigeria’s energy sector under President Bola Ahmed Tinubu, argued that the claims in the report failed to reflect the economic realities faced by households and the productive sector.

Oye, a former President of the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) drew attention to the continued dependence of businesses on self-generated power.

According to him, Nigerian companies spent an estimated N1.83 trillion on diesel within just two months.

He said this reflects the persistent failure of the power sector to provide reliable electricity for industrial and commercial use.

He also pointed to what he described as a sharp deterioration in the financial position of the Nigerian National Petroleum Company Limited (NNPC Limited), noting that its internal debt has risen by about 70 percent to approximately N30.3 trillion.

He added that rising operational costs are placing significant pressure on manufacturers, small businesses, and households, many of whom continue to rely heavily on generators due to unstable grid electricity supply.

The organisation called for a more transparent, data-driven assessment of energy sector performance, arguing that progress should be measured by real-world outcomes such as improved electricity supply, reduced reliance on diesel generation, and lower production costs for businesses.

He said, “The government’s report boasts of “$10 billion in Final Investment Decisions (FIDs)” and positions Nigeria as “Africa’s #1 destination for oil and gas investment,” citing a rise in Nigeria’s share of African upstream FIDs from 4% to 40% in two years.

“There is a kernel of truth here. Nigeria’s upstream investment environment has genuinely improved in recent years, and the 40% FID share figure is corroborated by the Africa Energy Chamber ExxonMobil has indeed been moving toward a Final Investment Decision on approximately $10 billion in deep-water projects in Nigeria

“Nigeria’s claim to be “Africa’s #1 investment destination” is aspirational. Sustained capital inflows will require more than a pipeline of announcements; they require the resolution of the governance deficits that the government’s report studiously ignores.”

Oye added, “The ‘Three-Year Review’ is a sophisticated document. It identifies real reform directions, acknowledges genuine challenges in passing, and presents a coherent strategic framework. But it is not an honest policy assessment. It is a political document designed to communicate a narrative of success to domestic and international audiences.

“The evidence presented in this article demonstrates that the report systematically overstates production achievements, presents a partial debt intervention as a transformative solution, ignores the structural fragility of the transmission network, conceals a ₦30.3 trillion crisis within the state oil company, and conflates permit issuance with gas utilisation progress.

“True energy sector reform cannot be measured by the volume of presidential directives or the elegance of bond structures. It must be measured by kilowatt-hours delivered, barrels produced without condensate inflation, and naira saved by reduced generator dependence. By these measures, Nigeria’s energy sector remains critically ill, and this report is a premature discharge summary.”