Accord party presidential candidate’s aide faults Oyedele’s position on oil revenue

By Ola Taiwo 

An aide to the Accord presidential candidate, Dr. Gbenga Olawepo-Hashim, Mr. Olika Odika, has faulted Finance Minister, Mr Taiwo Oyedele’s position on the quantity of revenue the Federal Government derives from the crude oil saying that the government aggregately derive more than the amount the minister was trying to present.

Odika who is a Senior Special Adviser to the Accord presidential candidate on economic matters described the minister’s argument that the Federal Government does not own all the crude produced in Nigeria as only half the truth.

He said the argument overlooked the government’s multiple revenue streams from the petroleum industry and its responsibility to ensure that the country’s oil wealth benefits Nigerians.

Odika argued that nation’s petroleum revenues ought to be assessed beyond the government’s direct share of crude production.

“The fact the minister’s argument obscures is that the Federal Government collects petroleum profit tax, royalties and sundry charges, in addition to NNPC’s share under joint-venture arrangements.

“These revenue streams must be considered together when assessing the total value accruing to the Nigerian state,” he stated.

Hashim-Olawepo’s adviser who argued that the government’s effective take could exceed 70 per cent under some petroleum fiscal arrangements, asked that there should be a transparent breakdown of production costs, contractual entitlements, royalties, taxes and other charges to establish the actual government share across the country’s petroleum projects.

He said that the debate should not end with arguments about crude ownership while Nigerians continue to bear the burden of high energy costs.

He stated: “The truth is that there is too much rent paid to the Federal Government compared with other oil and gas jurisdictions.

“There is too much money being shared among a few people while the majority cannot afford the energy required for transportation, agriculture and manufacturing.”

The economic adviser said that Nigeria’s central problem was not a lack of petroleum resources but the failure to organise the sector around affordable energy, domestic production and the wider economic interests of citizens.

Odika said that the Accord presidential candidate had, in his Energy First policy, proposed an initial petrol price benchmark of ₦605 per litre, with a gradual reduction to between ₦200 and ₦300 per litre through a deliberate restructuring of the domestic petroleum value chain.

He said the proposal was based on reducing the underlying costs of production and supply rather than relying on temporary price interventions that fail to address the structural causes of expensive petrol.

He stated: “Under the Energy First approach, Nigeria would prioritise domestic refining, ensure reliable crude oil supply to local refineries, reduce avoidable production and distribution costs, and improve efficiency across the entire petroleum value chain.

“The position of Dr. Gbenga Hashim is clear: Nigeria must put its energy resources to work for Nigerians. We cannot continue to produce crude oil while our people struggle to afford the energy required to transport goods, grow food and operate industries.”

Odika said that Nigeria could learn from other OPEC members that had structured their energy policies around domestic economic priorities, while adapting relevant lessons to the country’s production costs, fiscal arrangements and refining capacity.

The presidential candidate’s aide explained the Energy First policy reflected Olawepo-Hashim’s broader position that national resources should improve citizens’ economic capacity rather than remain disconnected from their daily realities.

He said that a country’s petroleum wealth should be measured not only by the revenue the government collects but also by the economic opportunities, affordable energy and productive capacity the resources create for its people.