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The African People’s Movement presidential candidate and Oyo State Governor, Seyi Makinde, has stated that Nigeria’s national debate over petrol subsidy is focusing on the wrong issues, arguing instead that the country urgently requires a fundamental review of its petroleum pricing framework.
Makinde outlined his economic perspective in the September edition of his official newsletter published on Friday, titled The Business of Governance, emphasizing that citizens deserve full transparency regarding the economic components shaping PMS pump prices.
Criticizing the current narrative surrounding fuel pricing, the governor remarked, “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 explained that an equitable pricing structure must clearly outline the crude oil price benchmark, refining operational costs, profit margins, foreign exchange assumptions, regional distribution expenses, applicable levies, and related market variables.
The governor also rejected policies that artificially inflate domestic fuel costs under the guise of curbing cross-border smuggling into adjacent West African territories.
Challenging current border protection arguments, Makinde stated, “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. Nigerians should not be made to bear the cost of government’s inability to secure its borders.”
He maintained that national conversations must evolve beyond the binary conflict of keeping or scrapping fuel subsidies, focusing instead on whether current systems maximize public value from crude oil reserves.
Reiterating his position on natural resource benefits, he stressed, “The petroleum question should therefore not simply be whether subsidy should return or remain removed. It should be whether the pricing system we are using is the right one for Nigeria and whether it allows Nigerians to derive a fair benefit from the natural resources they own.”
Concluding his remarks, Makinde announced plans to unveil a comprehensive alternative petroleum pricing model in the coming weeks for public evaluation and policy assessment.
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