Petrol subsidy debate: Nigeria asking wrong question – Makinde

Seyi Makinde, the presidential candidate of the African People’s Movement and governor of Oyo State, has criticized Nigeria's ongoing discussion surrounding petrol subsidies, claiming the nation should shift focus to its petroleum pricing framework. He made this stance clear in the September edition of his newsletter, "The Business of Governance," urging Nigerians to understand the factors influencing petrol prices.

Makinde emphasized that the crucial issue isn't whether the country should restore or maintain subsidies, but rather what the right pricing system for an oil-producing nation like Nigeria should be. He proposed that the framework should transparently outline crude oil benchmark prices, refining costs and margins, exchange-rate assumptions, logistics and distribution expenses, taxes and levies, alongside other elements impacting pump prices.

Furthermore, Makinde opposed raising petrol prices merely to deter smuggling into neighboring countries. He pointed out that Nigerians shouldn't be required to cover the expenses resulting from the government's failure to secure its borders. Consequently, Makinde urged the debate to move towards determining if the current pricing system is appropriate for Nigeria and whether it permits fair benefits for citizens from the nation's natural resources.

He indicated that he would unveil an alternative petroleum pricing framework in the forthcoming weeks for public review.