Nigerians suddenly woke up on Tuesday, 18th of July 2023, to an upward review in the price of premium motor spirit (pms), otherwise referred to as petrol. Aftermath of the hue and cry of the populace, the seemingly unconcerned Nigeria National Petroleum Corporation Limited (NNPCL) alerted the country of the change citing market forces as the market had been deregulated as soon as fuel subsidy was removed by President Bola Tinubu on 29th May 2023. Sadly, NNPCL announced a new price of N619 per litre of gasoline (pms) less than two months after another hyper increase!
The Good Governance Group (3G), a robust, conscientious and collaborative initiative of intelligentsia rubbed minds on this development in our country and decided to issue this Press Release informed by value-added discourse, debate and dialogue among members.
1. The eminent group appreciates that since the removal of fuel subsidy, the government cannot fix the price of pms as that will be interfering in the market process since forces of demand and supply should dictate pricing of gasoline going forward.
2. However, 3G as a group frowns at sudden change that the followers or populace always bear the brunt while the governments at all levels look on. Therefore, future review mechanisms should ensure abundant supply to all filling stations, countrywide, prior to adjusting to the new price. In this vein, a notice of nothing less than 72 hours should be given with strict monitoring to ensure compliance to all fuel stations selling at prevailing prices.
3. The Department of Petroleum Resources (DPR) used to move about monitoring compliance. It is high time this organ of government woke up from its deep slumber and moved round nationwide to heavily sanction errant retailers (fuel station owners) that breach quality and quantity as unscrupulous ones among them mischievously tampered with their metres to sell less for more money!
4. GGG (3G) will equally desire that the Federal Government addresses associated fees or levies along the line of importing pms into Nigeria such as jetty, landing, freighting, local taxes, etc. This may impact review of prices in the future.
5. It is equally imperative for the Federal Government to succinctly state to the citizens the actual status of our four refineries possessing professionals with no product as a sign of performance for years! 3G is advocating for either outright sale or major stakes be offered to core, credible and competent investors without delay. This should be done in a win-win situation specifically with salient terms and conditions mutually concurred to by both parties. Moreover, the Dangote Refinery is yet to produce one litre of commercial pms for the local market despite the huge euphoria that greeted the commissioning by former President Muhammadu Buhari.
6. It is a good initiative that both Lagos and Ogun State are leading the way in making use of electricity and gas in driving commercial automobiles respectively. Other states as well should replicate the laudable steps of Lagos and Ogun. What stops states partnering with private organizations, like Lagos is doing with Geregu Power PLC, to produce electricity to the mass of the people tapping from the new Electricity Act signed into law by President Bola Tinubu in June 2023?
7. Moreover, states could work with the organized private sector (OPS) to own modular refineries to produce locally refined gasoline (pms) that may bring down the price of the product in that locality. Doable.
8. It is high time the needed reforms in the whole oil sector, oozing out with palpable cancerous corruption, began as old bottles cannot contain new wine of this change-minded administration. Mr. President should hire new drivers before the sector is grounded! Seemingly, discerning minds cannot see NNPCL advancing any credible change since the inauguration of this government!
9. In the immediate, it is commendable that Mr. President is reviewing the paltry palliative of N8,000 per household employing the controversial register of the poor as passed on by the erstwhile administration of President Buhari. 3G is of the opinion that increasing the purchasing power of the populace is the way to go. In this way, the amount to be given monthly could be in the range of N20,000 – N30,000 per household administered through the state via the local government, flowing down to wards and units. The traditional rulers should be consulted in an all-inclusive manner as well. This may not reach all people but by and large going this route will reach real, rather than imaginary, beings; after all, we voted unit by unit in our wards; our PVCs could be a means of identification here.
10. GGG believes for our country to be great, we need to love and adhere to processes that lead to sustainable productivity as these will ultimately enhance our Gross Domestic Product (GDP). Hence, Long-term solutions are: local refining of our crude oil to products – boosting employment and income of our people; subsequently, we can export to African countries the products. Secondly, aggressive local production in agribusiness and mining resulting in industrialization through which our country will earn foreign exchange thus shedding the import driven toga we are presently wearing.
In conclusion, the Good Governance Group (3G), will want to commend Mr. President for putting his ears to the ground in filtering fitting feelers and feedback from followers within the polity, specifically in retracing his step about the N8,000 per household targeted at 12 million households countywide. The emergency declared in the agricultural sector is welcome but should be properly tracked by a team of incorrigible Nigerians appointed by the President. The federal government, especially with the states and local governments getting more funds, should work together and proactively invest in agribusiness to end hunger in all states and subsequently boost local industrialization. In addition, the Micro Small Medium Enterprises (MSME) could be boosted in an organized fashion. This in a way will diversify our apparent monolithic economy dependent upon oil. GGG (3G) believes, with Mr. President as a financial engineer not new to governance within Nigeria’s context, coupled with the acclaimed Lagos experience, Nigeria is most opportune to deliver good dividends of democracy to her citizens through President Tinubu’s firm and fixated policies. Nigeria will be great and prosperous.
God bless the Federal Republic of Nigeria.
Thank you.
Dr. John Ekundayo,
Convener, Good Governance Group (3G)
