The Nigerian Governors Forum disclosed that it fully supports the deregulation of Nigeria’s oil sector, which they say will end fuel subsidies and enable pump prices to be in line with global prices.
The NGF disclosed this in a statement on Thursday reported by Reuters, through Kaduna State Governor, Nasiru El-Rufai.
They revealed that the FG spending over N150 billion monthly on subsidy is unsustainable.
READ: Federal Government spends N2.3 trillion on Subsidies in 3 years – PwC
Why this matters
Mele Kyari, NNPC’s Group Managing Director disclosed in March that Premium Motor Spirit, popularly called Petrol, should be between N211 and N234/litre and that means consumers are currently not paying the correct market price.
“NNPC importing PMS at market price & selling at N162/L. The actual market price should be between N211 and N234/L,” he said.
According to Mr. Kyari, the burden is costing the NNPC N120 billion monthly.
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FG’s response
The federal government indicated in April that it may have suspended plans to end its subsidy payments as reports cited that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.