Managing Director and Chief Executive Officer of Fens Oil Nigeria Limited, Mr. Michael Udofia has said that fuel subsidy removal merely exposed Nigeria as an economy built on consumption rather than production.
The petroleum marketer has therefore cautioned that Nigeria’s economic crisis will persist unless the country abandons the export of raw materials and embraces local manufacturing.
Speaking in an exclusive interview with our correspondent in Uyo on Monday, Udofia said inflation, unemployment and pressure on the Naira are rooted in Nigeria’s dependence on imported finished goods, not in recent subsidy reforms.
According to the economist, the removal of petrol subsidy was a necessary but painful reform that revealed long-standing structural weaknesses in the economy.
“The subsidy was a painkiller masking a terminal illness: Nigeria’s status as a consumption nation, We import nearly everything — from petrol and milk to toothpicks and furniture. Reverting to subsidy is not a solution.” He said
Udofia, who also holds a national position in the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the old subsidy regime as fiscally reckless and deeply corrupt.
“I am 100 percent in support, and so is my association, IPMAN. The old subsidy regime bred massive corruption and had become an unsustainable financial burden,” he said.
He explained that subsidy removal has improved efficiency and transparency in the downstream petroleum sector, allowing genuine private investment to emerge.
“The reform has opened the space for private refineries like Dangote and modular plants, developments that were discouraged for decades by price controls and state dominance,” he said.
While acknowledging the hardship Nigerians face from higher fuel prices, Udofia maintained that inflation is inevitable in an import-dependent economy, where increased energy costs immediately raise transportation and logistics expenses.
Identifying obstacles to industrialisation, he said unstable electricity remains the biggest challenge, followed by insecurity, poor infrastructure and inconsistent government policies.
He called for urgent reforms in the power sector and a deliberate national shift from consumption to production, stressing that government should focus on providing security, infrastructure and policy stability.
Udofia said his business philosophy prioritises long-term value over quick profits, noting that investments in physical assets such as filling stations help build sustainable institutions.
He said his expansion into large-scale palm oil production was driven by the global energy transition and strong demand for agricultural commodities, adding that his company operates one of Akwa Ibom State’s largest palm plantations with over 7,000 stands.
Udofia criticised policies such as granting civil servants time off to farm, describing them as symbolic and ineffective, and stressed that agriculture cannot succeed without processing facilities and efficient logistics.
“Value addition is non-negotiable. We must stop exporting raw materials and start exporting finished goods. We export crude oil and import petrol; we export cocoa beans and import chocolate. This exports jobs and imports inflation,” he said.
He maintained that only through local processing of resources can Nigeria stabilise prices, create jobs and build a resilient economy.
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