Abuja: An Energy Expert, Dr. Billy Gillis-Harry, has urged the Federal Government to invest any windfall from rising crude oil prices into the refineries and strategic sectors of the economy to ensure long-term national benefits. Gillis-Harry, who is also the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), made this known on Sunday in an interview in Abuja.
According to News Agency of Nigeria, Nigerians have expressed concern about the implications of the U.S./Israel-Iran tensions on crude oil prices in the global market and the expected boom for Nigeria, following the 2026 budget benchmark of $64.9 per barrel. Dr. Gillis-Harry highlighted that Nigeria stands to gain significantly as oil prices soar above this benchmark.
Gillis-Harry further explained that the budget considers an oil production of 1.84 million barrels per day and an exchange rate of N1,400 per dollar. This scenario positions Nigeria to benefit from the current surge in global crude oil prices, driven by escalating tensions in the Middle East.
Reflecting on history, Gillis-Harry noted that during the Gulf War in the 1990s, Nigeria reportedly earned over $12 billion in oil windfall. With the current international crude oil price ranging between $92 and $100, Nigeria faces a significant revenue opportunity. However, he cautioned against mismanagement of such windfalls, emphasizing the need for productive investments that can provide long-term value.
Gillis-Harry advocated for channeling additional revenue into strengthening the sovereign wealth fund, reviving comatose refineries, and supporting the government’s gas revolution. He also stressed the importance of investing in viable economic ventures to generate additional income.
Discussing the geopolitical implications, he stated that conflicts in major oil-producing regions often disrupt global energy supply chains and elevate crude oil prices. Despite being an oil producer, Nigeria is affected by international price fluctuations because crude oil is traded and priced globally.
Gillis-Harry explained the operations of the Dangote Refinery, noting that it purchases crude oil based on the international dollar price, affecting local refining operations. He pointed out that domestic crude allocations are limited due to joint venture agreements with companies like Shell and Chevron, emphasizing the need to expand Nigeria’s production capacity to meet domestic and international demands.
He proposed that exporting refined petroleum products would create more economic value than exporting crude oil alone. Gillis-Harry also dismissed calls for subsidizing crude oil supply to refiners, citing the joint venture structure of Nigeria’s oil industry. He concluded by urging authorities to strengthen oversight functions to maximize national revenue from oil assets.