Energy expert Kelvin Emmanuel has said Nigeria is failing to take advantage of the current global oil price surge, blaming deep-rooted structural weaknesses and ineffective policies in the petroleum sector.
In his remarks during an interview over the weekend, Emmanuel stated that although there is currently a unique opportunity for oil producers to increase their incomes owing to geopolitical tensions, Nigeria has failed to capitalize on the chance to make tangible economic progress.
He stated that Nigeria would normally be recording huge income figures at the current levels of oil prices but that it is hampered by inefficiency. Emmanuel warned that the global crisis that has led to the escalation in the price of crude oil might be resolved within a period of three years from now.
Emmanuel pointed out that there has been an increase in crude oil prices on account of disruption of supplies in certain parts of the world, leading to an extensive difference between the dated Brent prices and future prices. The former is estimated to range between $99 and $106 per barrel while the latter is reported to be at as much as $144 per barrel.
Nonetheless, according to Emmanuel, Nigeria has failed to benefit from the situation since a major share of its crude oil production has already been sold ahead to certain parties.
News: Tinubu Commissions Key Infrastructure Projects in Bayelsa
He also criticised the structure of Nigeria’s oil sector, pointing out that the Nigerian National Petroleum Company (NNPC) plays both regulatory and commercial roles, a setup he described as fundamentally flawed. This, he argued, limits transparency, efficiency, and the country’s ability to maximise revenue from its oil assets.
Emmanuel further highlighted the absence of a strategic petroleum reserve, noting that countries with such systems are better positioned to profit during supply shocks. He described crude oil storage as a matter of national security, stressing that Nigeria’s lack of reserves weakens its ability to respond to market volatility.
On fiscal management, he faulted Nigeria’s approach to oil revenue, saying the country spends all it earns and continues to borrow, rather than saving for the future. He compared this with countries like Norway, which used early oil revenues to build a sovereign wealth fund and maintain fiscal discipline.
He also raised concerns about the management of excess crude revenues, describing the Excess Crude Account as opaque and subject to discretionary withdrawals without sufficient public accountability.
Overall, Emmanuel maintained that without urgent reforms to address structural flaws, improve governance, and strengthen policy frameworks, Nigeria will continue to miss out on critical oil windfall gains, even during periods of high global prices.
