KEY POINTS
- Makinde says Nigerians are asking the wrong question about petrol subsidy removal.
- He wants the government to disclose how pump prices are calculated.
- He rejects higher petrol prices as a solution to cross-border smuggling.
Oyo State Governor and Allied Peoples Movement (APM) presidential candidate, Seyi Makinde, has called for a change in the way Nigerians debate the removal of petrol subsidy, arguing that the central issue should be how petroleum prices are determined in an oil-producing country.
Makinde made the position known in a newsletter issued on Thursday as he outlined aspects of his proposed Reset Nigeria Agenda.
According to him, the debate has been dominated for too long by a simple choice between reinstating petrol subsidies and allowing consumers to pay what is described as the market price.
He argued that this approach fails to address the more fundamental question of whether the pricing system itself is transparent, fair and appropriate for Nigeria.
“I believe we are asking the wrong question. The more important question is: what is the right pricing framework for an oil-producing country like Nigeria?” he said.
Calls for transparency in pump-price calculations
Makinde said Nigerians should be given clear information on the factors used by the government and other relevant authorities to determine petrol pump prices.
He said the public should be able to understand the assumptions behind the price of petrol, including the benchmark used for crude oil, refining expenses, profit margins, exchange-rate assumptions, transportation and distribution costs, taxes, levies and other charges.
According to the governor, making such information publicly available would allow Nigerians to independently assess whether petrol prices reflect the actual cost structure of the downstream petroleum sector.
“What Nigerians deserve to know is the current pricing framework and the assumptions that determine what we pay at the pump,” Makinde said.
He argued that greater transparency would also enable consumers and policymakers to compare Nigeria’s pricing structure with alternative approaches used by other oil-producing countries.
The Oyo governor also criticised the argument that petrol prices should remain high in order to reduce the incentive for smugglers to move petroleum products across Nigeria’s borders.
Makinde said Nigerians should not be required to pay more for petrol simply because price differences with neighbouring countries make smuggling profitable.
He maintained that border security is the responsibility of government and that citizens should not bear the financial burden of weaknesses in border enforcement.
