Rewane Proposes Refinery-Led Subsidy Model as Nigeria Weighs Oil Windfall and Rising Fuel Costs

Economist Bismarck Rewane proposed a refinery-led subsidy model to cushion consumers without restoring blanket fuel subsidies.

His plan would have the government supply crude to selected domestic refineries at controlled prices and require refiners to pass savings to consumers.

The proposal is timed amid crude prices rising above $100 per barrel and projections of a potential N30.2 trillion oil windfall for Nigeria.

Execution challenges include feedstock pricing, existing crude supply commitments, governance weaknesses, and risks of leakage.