Nigeria Can Shield Its Fuel Market From Global Oil Price Shocks Using Export Taxes: SA Researcher
16:56 10.03.2026 (Updated: 17:37 10.03.2026)
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Nigeria Can Shield Its Fuel Market From Global Oil Price Shocks Using Export Taxes: University of the Free State Researcher
Nigeria already has a tiered oil royalty system under which the state takes a higher share of revenue as crude prices rise, and this could help soften the impact of global price shocks on the domestic market, Tafadzwa Ruzive told Sputnik Africa.
He noted that expanding the domestic naira-based value chain around projects such as the Dangote refinery has also helped reduce pressure on the country’s balance of payments and lower the need for imported refined fuel.
“A subsidy funded by extra revenue from an export tax could be the direction that must be taken now to alleviate pain on the domestic customer,” Ruzive explained.
According to the researcher, redirecting part of these additional revenues back into the domestic system could help cushion consumers while allowing Nigeria to benefit from strong global demand for its crude.
Nigeria already has a tiered oil royalty system under which the state takes a higher share of revenue as crude prices rise, and this could help soften the impact of global price shocks on the domestic market, Tafadzwa Ruzive told Sputnik Africa.
He noted that expanding the domestic naira-based value chain around projects such as the Dangote refinery has also helped reduce pressure on the country’s balance of payments and lower the need for imported refined fuel.
“A subsidy funded by extra revenue from an export tax could be the direction that must be taken now to alleviate pain on the domestic customer,” Ruzive explained.
According to the researcher, redirecting part of these additional revenues back into the domestic system could help cushion consumers while allowing Nigeria to benefit from strong global demand for its crude.
