African People’s Movement presidential candidate and Oyo State Governor, Seyi Makinde, has said Nigeria’s ongoing debate over petrol subsidy is centred on the wrong issue.
Drivetvnews gathered that Makinde made the statement in the September edition of his newsletter, The Business of Governance, published on Friday.
He argued that instead of focusing solely on whether petrol subsidy should be restored or remain removed, Nigeria should develop a transparent petroleum pricing framework that reflects the realities of an oil-producing country.
According to him, Nigerians should be able to clearly understand the factors responsible for the price they pay for petrol.
Makinde said such a framework should disclose the crude oil price benchmark, refining expenses and margins, exchange-rate assumptions, logistics and distribution costs, taxes, levies and other elements used in determining pump prices.
The governor also rejected the argument that petrol prices should be increased to discourage smuggling to neighbouring countries.
He maintained that Nigerians should not be made to pay more because of the government’s inability to effectively secure the country’s borders.
Makinde said the conversation should therefore shift from whether subsidy should return to whether the existing pricing system is appropriate and ensures that Nigerians receive a fair benefit from the country’s natural resources.
He added that he would unveil an alternative petroleum pricing framework in the coming weeks for Nigerians to examine and assess.
