A former Labour Party spokesperson, Abayomi Arabambi, has called for a government investigation into Nigeria’s crude oil management, alleging that the country has committed crude production up to 2030 because of arrangements linked to petroleum imports and subsidy payments.
Arabambi made the allegation on Thursday, October 8, 2026, while speaking on Frontline, a current affairs programme on Eagle 102.5 FM, Ilese-Ijebu, Ogun State.
According to him, Nigeria has been using crude oil in advance to settle obligations arising from the importation of petroleum products, a practice he said had placed additional pressure on the country’s finances and external reserves.
“Do you know that because of this, Nigeria has sold our crude up to 2030 because of this crude management?” Arabambi said.
He alleged that Nigeria had been giving out crude to settle payments while still allowing importers to return with claims against the government.
His comments formed part of a broader criticism of the former petrol subsidy regime, which he described as an “organised fraud” that enabled some interests to benefit from public resources.
Arabambi argued that the government should establish what happened to the various products derived from Nigerian crude whenever the commodity was exported for refining.
“I have expected the President to institute a panel of inquiry – every person, every company that is picking our crude abroad, where is the kerosene? Where are the other components? The asphalt, the petroleum, the diesel… Where are they?” he asked.
He maintained that a barrel of crude contains more than petrol and questioned why Nigeria appeared to receive only petrol from arrangements involving crude exported for refining.
“Is it only petrol that is the only component of crude? No,” he said.
Arabambi argued that the value of the other petroleum products should be properly accounted for rather than allowing importers to return to government with additional financial claims.
He proposed an arrangement in which the crude supplied for processing would effectively cover the cost of the petrol returned to Nigeria.
“I have expected that when you say you sell crude abroad, this should have been the component that they will now use as payment for the petrol, so that they will bring that petrol back to them free of charge,” he said.
He also did not identify specific companies allegedly responsible for the arrangement.
Arabambi’s comments came amid renewed political debate over fuel pricing ahead of the 2027 elections.
Different political actors have proposed varying approaches to subsidies, domestic refining and the use of Nigeria’s crude for local petroleum production.
He defended the removal of petrol subsidy, despite acknowledging the hardship it has imposed on Nigerians.
According to him, the critical issue was not simply whether subsidy should exist, but whether the system was being operated transparently and efficiently.
He alleged that the previous arrangement enabled some importers to claim the difference between the landing cost of imported petrol and the subsidised price paid by consumers, while government borrowed money to sustain the system.
Arabambi also pointed to the Dangote Refinery as an important development in Nigeria’s petroleum sector, arguing that increased domestic refining capacity and greater competition could eventually reduce fuel prices.
He said government should encourage more investment in refining and manufacturing instead of relying on palliatives to cushion the effect of higher petrol prices.
“When you have influx of manufacturing companies, that is when employment will be made available. You cannot sit at home and be expecting palliative,” he said.
Arabambi further argued that increased local refining and petroleum supply would eventually help moderate prices, provided Nigeria could stabilise its economy and expand productive capacity.
