Nigeria Governors Forum Recommends N408.5 Petrol Pump Price From N163
BY VICTOR BUORO, ABUJA – Desirous to have more money following into their states’ covers, the Nigeria Governors Forum (NGF) has recommended N408.5 per litre as the appropriate petrol pump price in the present circumstance.
It however said that with concessions to labour unions, N380 per litre could be the minimum pump price of petrol.
Presenting the committee’s report setup by the NGF, its chairman, Governor Nasir El-Rufai of Kaduna State, called for the immediate removal of fuel subsidy to save the nation’s economy.
El-Rufai stressed that the current subsidy regime was unsustainable since smugglers and illegal markets in neigbouring African countries are the beneficiaries.
The committee chairman further said that Nigeria, like other Organisation of the Petroleum Exporting Countries member countries, agreed to a cut production to keep the prices high but that Nigeria did not fully benefit from the regime because of subsidies.
According to El-Rufai; “Between N70bn and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre. This is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist. We are already at zero. I understand for tomorrow, so this scenario has occurred.
“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.
“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions. This is the root of the problem and now we are back to losing between N70bn to N210bn per month,” he said.
El-Rufai also said that in the 2021 budget, the NNPC committed to remitting a minimum of N120bn per month to the federation account, but it had been unable to do so.
He also said that only about 12 states consumed two-thirds of the petrol, which is being heavily subsidized, stressing that there is the need to free funds for critical projects and payment of other obligations.
He therefore said; “The committee recommends PMS pump price increment from the current N162 per litre to N408.5 per litre (negotiations with organized labour unions). N380per litre (settlement with organized labour).”
In his contribution, Governor Dapo Abiodun of Ogun State, said the 93 million litres which the NNPC claimed is being consumed in Nigeria daily is unacceptable.
Addressing the media at the end of the NGF meeting, its Chairman, Governor Kayode Fayemi appealed to labour to give peace a chance in Kaduna by returning to the negotiation table.
On the ongoing strike by the judiciary and parliamentary workers, Fayemi said most of the issues have been agreed on even as he quickly added that the NGF was not in direct negotiations with the striking unions but with the representatives of the National Judicial Council and the speakers’ parliament.
Fayemi further said; “It is in the interest of Nigeria that they return to work for justice to be dispensed to many Nigerians awaiting trial or justice”.
