*Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise, submits the latest increase in Premium Motor Spirit price is regrettably ill-timed, and does not reckon with the prevailing difficult economic conditions in Nigeria

Isola Moses | 绿帽献妻

Sequel to the N1,030 latest price increase of the Premium Motor Spirit (PMS), also called petrol, which the Nigerian National Petroleum Company (NNPCL) announced via its retail outlets Wednesday, October 9, 2024, analysts, organisations, and energy consumers across the country have continued to react to the development.

The NNPCL increased the PMS price from N855 per litre to N998 per litre in most parts of Lagos State.

However, it was gathered that at some filling stations, in Abuja, FCT, marketers sold PMS between N1,030 and N1,100 as of evening Wednesday.

Dr. Muda Yusuf, Director/CEO of CPPE

绿帽献妻 investigations revealed as of evening Wednesday, October 9 at a few locations in Lagos State revealed that some independent marketers, who hitherto had sold the Premium Motor Spirit between N900 and N1,000 to energy consumers earlier in the day, later began to sell the petroleum product at higher prices between N1,200 and N1,300 after the NNPCL effected the price change at its retail outlets.

Between Petroleum Industry Act 2021, full deregulation and price hike

Several energy consumers equally believe that sudden increase in petrol price must have resulted from the NNPCL鈥檚 official withdrawal from its 鈥渆xclusive role鈥� as the sole petrol buyer from the Dangote Petroleum Refinery, located in Lagos.

It also noted that the latest development describes market-reflective pricing that ultimately would ensure 鈥渟tability in the downstream petroleum sector of the Nigerian economy, as some said this had been central to the Federal Government鈥檚 pricing strategy all along.

In view of the Nigerian Government鈥檚 full deregulation of the downstream petroleum sector in accordance with the Petroleum Industry Act (PIA) 2021 now, both the NNPCL as the state oil firm and other players in the sector would operate to ensure 鈥渁ffordability and availability of petroleum products鈥� for Nigerian energy consumers, close sources said.

Why Nigerian economy is unripe for full-blown deregulation, market principles 鈹�Dr. Yusuf

Reacting to the development in the downstream petroleum sector, Dr. Muda Yusuf, Director/Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), opined the Nigerian economy is not ripe for full-blown deregulation and market principles on all fronts.

The expert, in a statement, said that the social cost of such policy choices are typically very high in an economy like Nigeria鈥檚.

The CEO of CPPE also averred that the latest increase in Premium Motor Spirit (PMS) price to N1,030 is regrettably ill-timed, and does not reckon with the prevailing difficult economic conditions.

According to him, it is important to stress that social, economic and political considerations matter in policy choices.

鈥淐ommercial considerations should not completely override these considerations. There is always a place for political economy in the interest of the vulnerable segments of society,鈥� stated he.

Yusuf also emphasised that the Nigerian is still one with very weak social safety nets. He further noted that over 100 million consumers are wallowing in various variants of poverty in the country.

There is also an issue of policy sequencing. The present administration has presented an Economic Stabilisation Bill to the National Assembly (NASS).

On Economic Stabilisation Bill and alleviating economic pressure on Nigerians

In regard to what the Nigerian Government should do to bring considerable succour to consumers, the Chief Executive of CPPE said: 鈥淭he bill is expected to bring some relief to the citizens and businesses.

鈥淚t would have been better to allow the proposed mitigating measures to be activated and gain traction before coming up with the petrol price hike.

鈥淲hat the economy needs at this time are measures to ease the current economic and social challenges, not policies that would aggravate them.鈥�

Yusuf pointed out that it is desirable at this time to urgently cut import duties and taxes by a minimum of 25 percent on all industrial raw materials, passenger buses of 18-seater and above and cars of 2000cc engine capacity and below.

He stated: 鈥淭he customs duty exchange rate should be fixed at a maximum of N1000/dollar to reduce the current prohibitive cost of imports. Relevant legislation should be amended to that effect.

鈥淭his is without prejudice to the fiscal policy measures contained in the Economic Stabilisation Plan.鈥�

The CPPE Chief added: 鈥淭he government must be ready to trade off some revenue in the current situation.

鈥淭here is a need to seek to achieve the maximisation of welfare function for citizens and productivity function for businesses.

鈥淭he government should not be too fixated on revenue maximisation.鈥�

Government taking Nigerians for granted 鈥擭orthern Youths

In its remarks on the PMS price increase, the Northern Youth Council of Nigeria has decried the fuel hike to N1,030.

The group stated that the Federal Government is taking Nigerians for granted.

Comrade Isah Abubakar, National President of the Northern Youth Council of Nigeria, said that something would definitely happen because Nigerians would not just continue to endure the hardship, Daily Independent report said.

Abubakar also asserted: 鈥淲e鈥檙e being taken for granted by the Federal Government. Time will come when Nigerians will resist and things will change for the better but obviously these leaders have been harsh on the people.

鈥淲e don鈥檛 know how it will happen, but we鈥檙e optimistic that it will happen because we cannot continue on this trend.鈥�

The National President of the Northern Youth Council of Nigeria argued: 鈥淥ur roads are not fixed. We don鈥檛 have a good transport system; our states are not connected by rail. 鈥淲e don鈥檛 have alternative means of transportation. Where on earth does the government want Nigerians to lay their heads?

鈥淭hree days ago when the rumour of this fuel pump price was making the rounds, already food prices have skyrocketed in the market.鈥�

Abubakar said: 鈥淪o it鈥檚 unfortunate because everyone is in pain. I spent over N60,000 to buy gasoline to transport to Abuja for a journey of less than eight hours.

鈥淚 don鈥檛 think that Nigerians can sustain this, the reason poverty has continued to deepen.

鈥淥ut of schoolchildren continue to increase, maternal mortality rate has continued to increase. Things that the government should do to make life better for Nigerians, they disregard.

鈥淯nfortunately for us the opposition political parties are not vibrant. I don鈥檛 just know where we鈥檙e going. What we have now is not different from the military junta.鈥�

He also noted: 鈥淲e find ourselves in an unfortunate situation where people wake up and decide whatever they want to do.

鈥淢ajority of the people making these anti-people policies are not the ones fuelling their vehicles. 聽Their vehicles are being fuelled by the government.

鈥淪o, in one way or the other it doesn鈥檛 affect them but one beautiful thing about life is that power is transient. Definitely, they鈥檒l leave there and join us at the spectator table.鈥�

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