Despite the current challenge of a major increase in petrol price, stakeholders have emphasised the potential long-term benefits of removing fuel subsidy, JOSEPHINE OGUNDEJI writes
A few hours after President Bola Tinubu announced the end of the petrol regime in his inaugural speech on May 29, petrol pump prices skyrocketed from N195/litre to over N500/litre in all states and the Federal Capital Territory.
Although President Bola Tinubu alluded to the fact that although the removal of the petrol subsidy would impose an extra burden on citizens, he claimed it would free up money for education, regular power supply, transport infrastructure, and healthcare. However, during an advocacy dialogue forum organised by the Chartered Institute of Bankers of Nigeria via its Centre For Financial Studies last week, economic experts and officials of the institute analysed the potential benefits of the downstream petroleum sector
The don said Nigeria needed to keep to a formula-based approach for determining fuel prices in the short term while expediting actions in respect of putting in place a vibrant domestic refining industry. “Nigeria will no longer spend N13bn every month on refineries that are not producing and inefficient, and would have saved over $19bn spent on TAM of refineries in the past eight years.”
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