The Best Time End To Petrol Subsidy Is Now – Adewole

The Publisher of Swift Reporters and Energy Sector Fellow/Consultant to ACCI Policy Centre, Adewole Kehinde has called for total removal of petrol subsidy.

Adewole who spoke to some journalists in Abuja on Thursday said that total withdrawal of petrol subsidy is inevitable. It is a reality we have to face as a nation.

“Nigeria is subsidising the petrol being smuggled into neighbouring countries considering that our fuel consumption is 60% of what is pushed out.

“The N1.4trillion for subsidy annually can go into other developmental projects to remove the effect of subsidy removal on the masses, Adewole said.

It will be recalled that the NNPC has notified the Federal Government of Zero allocation for the month of May, 2021.

“With contribution from the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS) and remittances from non-oil sources, especially other mineral proceeds, the Excess Crude Account (ECA) and the Nigeria Sovereign Investment Authority (NSIA), the Zero allocation from the NNPC should not be a major concern to the Federal Government.

“That doesn’t mean the Federal Government should relax on the subsidy removal because Petroleum is the major source of finance for the Government.

The NNPC had written to the Accountant-General of the Federation that “the sum of N111.966,456,903.74 will be deducted from April 2021 Oil and Gas Proceeds due to the Federation in May 2021, which will translate to zero remittance to the Federation Account from the NNPC in the month of May 2021. This is to ensure the continuous supply of petroleum products to the nation and guarantee energy security”.

The NNPC said it arrived at the decision because “the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of NI28 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.