Fuel Subsidy: Nigeria’s Pricing Model Must Change – Gov Makinde

Fuel Subsidy: Nigeria’s Pricing Model Must Change – Gov Makinde

Oyo State Governor Seyi Makinde has called for a fundamental review of Nigeria’s petroleum products pricing framework, arguing that the ongoing debate over fuel subsidy misses the real issue.In his latest newsletter, Makinde said the question should not simply be whether subsidy should be restored or remain removed. Instead, he stressed that the more important question is what constitutes the right pricing model for an oil-producing country like Nigeria.“I believe we are asking the wrong question. The more important question is: what is the right pricing framework for an oil-producing country like Nigeria?” the governor stated.Makinde argued that Nigerians deserve full transparency on the factors that determine pump prices. These include the crude oil price benchmark, refining costs and margins, exchange-rate assumptions, logistics and distribution costs, taxes, levies, and other variables in the pricing calculation.He noted that different countries arrive at petroleum prices through different methods and insisted Nigeria must adopt a framework suited to its status as an oil producer. The governor advocated shifting towards transparent pricing based on local production costs, domestic crude allocation in naira, and deeper refinery reforms. This approach, he said, would help reduce the country’s exposure to high import costs and foreign exchange volatility.Makinde also rejected the argument that Nigerians must pay higher prices simply to discourage fuel smuggling to neighbouring countries. He maintained that citizens should not bear the cost of the government’s inability to secure its borders.The governor, who is the presidential candidate of the African People’s Movement (APM), said his administration would in the coming weeks present an alternative position on petroleum pricing for public assessment. He framed the call as part of a broader “Reset Nigeria” agenda aimed at interrogating existing systems rather than limiting the conversation to the binary of subsidy return or removal.  

Source: Fuel Subsidy: Nigeria’s Pricing Model Must Change – Gov Makinde



The story behind the headline — analyzed by 10 AI models, updated 4x daily. → drux.space/hub