NewzBy Sekinat Osundiji Oyo State Governor Seyi Makinde has called for a rethink of Nigeria’s petroleum pricing system, saying the debate should no longer be limited to whether fuel subsidy should be removed or restored. Makinde argued that as an oil-producing country, Nigeria should instead examine whether the framework used to determine petrol prices reflects the country’s economic realities and allows citizens to benefit fairly from its natural resources. According to Makinde, the longstanding argument over fuel subsidy has failed to address the more fundamental issue of how petroleum prices are actually determined.
“Different countries arrive at petroleum prices differently. What Nigerians deserve to know is the current pricing framework and the assumptions that determine what we pay at the pump,” he said. He called for greater transparency around the components used to arrive at petrol prices, including crude oil benchmarks, refining costs, margins, exchange-rate assumptions, logistics, distribution costs, taxes and levies.
Makinde said making such information available would allow Nigerians to understand the basis for the prices they pay and compare the existing model with possible alternatives. The governor also rejected the argument that higher domestic petrol prices were necessary to discourage smuggling into neighbouring countries. “We should also reject the argument that Nigerians must pay more for petroleum products simply to eliminate the price difference that makes smuggling into neighbouring countries profitable,” Makinde said.
“Nigerians should not be made to bear the cost of government’s inability to secure its borders.” He said the country’s petroleum policy should therefore be assessed beyond the binary question of whether subsidy should remain removed or be reinstated. “Reset Nigeria means being willing to interrogate the system itself,” Makinde said. The governor disclosed that he would unveil his alternative approach to petroleum pricing in the coming weeks, saying Nigerians would then have the opportunity to assess the proposal.
Makinde said the need for systemic reform extended beyond the petroleum sector, arguing that many of Nigeria’s persistent challenges were rooted in… By Ayobami Okerinde Oyo State Governor, Seyi Makinde, has joined the growing debate over fuel subsidy ahead of the 2027 elections, saying Nigerians should not be made to pay more for petroleum products simply because the federal government cannot secure the country’s borders against smuggling. According to the governor, the debate should not simply be about whether fuel subsidy should return or remain removed.
“For years, the debate in Nigeria has largely been presented as a choice between subsidising petroleum products or allowing Nigerians to pay the full market price. 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 Nigerians deserved greater transparency over the factors determining the price of petrol at filling stations.
Summary from source