Hard Economic Times Await Nigerians as Governors Consider N380 Per Litre of Fuel
There are strong indications that Nigerians may be heading to more hard times with the Nigeria Governors’ Forum (NGF) supporting full deregulation of the pump price of petrol in the country.
The Committee set up by the NGF in its report had called for immediate removal of the fuel subsidy.
At a virtual meeting Wednesday, the Committee recommended that the price of fuel be sold between N408.5 per litre and N380 per litre, a price that will see prices of goods and services in the country multiply.
Embattled Kaduna State Governor, Mallam Nasir el-rufai who is the chairman of the Committee while presenting the report said the subsidy regime cannot be sustained because of smuggling and illegal markets in Nigeria’s neighbouring coungries.
According to the Committee the only solution was for the subsidy to be removed immediately to save the nation’s economy.
He said, “Between N70bn 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.
“We are already at zero. I understand for tomorrow, so this scenario has occurred.
“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.
“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions. This is the root of the problem and now we are back to losing between N70bn to N210bn per month.”
The Committee set up by the NGF in its report had called for immediate removal of the fuel subsidy.
At a virtual meeting Wednesday, the Committee recommended that the price of fuel be sold between N408.5 per litre and N380 per litre, a price that will see prices of goods and services in the country multiply.
Embattled Kaduna State Governor, Mallam Nasir el-rufai who is the chairman of the Committee while presenting the report said the subsidy regime cannot be sustained because of smuggling and illegal markets in Nigeria’s neighbouring coungries.
According to the Committee the only solution was for the subsidy to be removed immediately to save the nation’s economy.
He said, “Between N70bn 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.
“We are already at zero. I understand for tomorrow, so this scenario has occurred.
“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.
“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions. This is the root of the problem and now we are back to losing between N70bn to N210bn per month.”
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