Some Nigerians have expressed deep anger and opposition to the proposal of the Nigerian Governors Forum, NGF, Committee on fuel subsidy, to push for full deregulation of the downstream Petroleum sector, that will increase petrol pump price to N408.5 per litre, .
At a virtual meeting on Wednesday, the Committee chaired by the Kaduna State Governor, Nasir El-Rufai, in a report, recommended Premium Motor Spirit, PMS, otherwise known as petrol, price of between N408.5 per litre and N380 per litre, while calling for the immediate removal of fuel subsidy.
Governor El-Rufai said that the current subsidy regime is unsustainable, and only smugglers and illegal marketers benefit from it.
He also said that Nigeria cannot fully benefit from the recent production cut by the Organisation of Petroleum Exporting Countries, OPEC, which is meant to keep fuel prices high, because of subsidies.
His words: “Between N70 billion and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre, this is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist.
“The Committee recommends PMS pump price increment from the current N162per litre to N408.5 per litre (negotiations with organized labour unions). N380 per litre (settlement with organized labour).”
Reacting to this on Friday, Nigerians across the States unleashed their anger on the Governors.
In Anambra State, a Civil Servant, Mr. Uzoma Okeke, stated that the proposal is unthinkable, given the state of the nation’s economy.
A Bus Driver, Michael Okafor, said that he is already struggling to buy petrol at N170/litre in the State.
In Jos, Plateau State, Malam Nura Alhassan, a Tailor, expressed dismay over the development, saying: “If the proposal becomes reality, the poor in this country will suffer a lot, because whatever figure is increased, the effect will fall on the ordinary Nigerian.”
More persons reacted to this in Kaduna, Port Harcourt, Abeokuta, Jos and Kano. For instance, in Kano, Buhari Abba Rano, 36, said: “With this level of insecurity around Nigerian Governors are busy commissioning fake projects and loitering around Abuja and overnight agitating for complete deregulation. This this shows that our crude oil has become useless and they don’t care about the lives of the common man.”
Fatima Baba Kura said: “I believe this proposed price will set back the country to a worse state than it is.”
In Lagos, many Nigerians expressed shock over the proposed fuel price increment from the Governors who are supposed to defend their people.
A Student, Miss Onyekachi Emeka, stressed that the price increase would trigger a hike in transportation fare.
Across Akwa Ibom, Abia and Edo States, the residents corroborated the views of other Nigerians, as they described the proposal as unfair to the Nigerian populace who have already had enough of the inflation rate, high cost of food and fuel, and the deteriorating security situation.
Experts who reacted to the development have urged the Federal Government to discard the Governors’ proposal in the best interest of Nigerians.
A Petrol Industry Commentator, Siraju Oyewale, disclosed that arbitrary fixing of fuel price is antithetical to the principle of deregulation.
“I have a problem with people sitting down and fixing prices of petrol. That is not deregulation. That is still price regulation. Politicians, or even government agencies fixing prices is antithetical to the principle of deregulation.”
Although he supports deregulation, Oyewale said that the price would initially rise above the current price, but not up to N380.
He also said that Nigeria must refine its crude oil locally, to tackle the rising petrol import cost by NNPC.
An Abuja based Economic Expert, Samson Simon Galadima, revealed that selling petrol at more than twice the current price would further exacerbate inflationary pressure, hence, impoverishing Nigerians even more as purchasing power is diminished.
Galadima maintained that a lasting solution to Nigeria’s fuel price instability will be a deeply diversified energy-mix, “because our overdependence on petrol is quite unhealthy”.
The President of the Independent Marketers Association of Nigeria, IPMAN, Chinedu Okoronkwo, stated that it is wrong for the NGF to fix fuel price.
He stated that full deregulation will encourage more local and foreign Investors to invest in the sector and grow the economy, but that the Governors’ proposal should not be honoured.
More news later…