How petrol can sell for N300 per litre — Former NBA President tells Federal Government
Former President of Nigeria Bar Association (NBA), Dr. Olisa Agbakoba, SAN, has explained how the current challenging times Nigerians experience can be effectively addressed such that petrol will sell for as low as N300 per litre.
The SAN, who disclosed this in an interview with The Vanguard, noted that with respect to the Nigerian project, President Bola Tinubu has taken on a very challenging assignment, but all hope is not lost as he trust the capacity of the president to deliver the goods in the long run.
He said: ” President Tinubu has been contending with two major headwinds. One is the issue of the removal of subsidies, and another is the exchange control issue. How he handles them will depend on his skills as a pilot. But the climbing
“When you are climbing out and you hit the head wind, you have to be in full focus. So, the climb-out has been extremely tough.
“There is no doubt about it. What I think is that he ought to be using full power because when a pilot is climbing, he has the power to trot. What I see Captain Tinubu doing at this stage is using only 50 percent of his throttle power.
“He needs to push that throttle to the limit so that the climb-out can be great. I will say that the turbulence will continue until the Supreme Court makes its final decision,” the SAN declared.
He stressed that: “What is obvious is that Nigerians have to go through a very tough time. It has been the toughest time in the history of this country since independence, as garri, rice, vegetables, and other staple foods are way out of the reach of the common man.”
Speaking on how the federal government, amidst the current economic headwinds gripping the country, can reduce the current price of petrol, he said: “I can give an idea of how to reduce the price of PMS today by half. To achieve that, NNPC should sell crude to many modular refineries in the country at a naira price. Why should NNPC sell our crude oil to Nigerian modular refineries in dollars? We must set aside a national crude oil scheme for local consumption.”
“The price will drop to N300. I dare NNPC to try it; the price will drop. But if you sell it at the international market rate, how will those who are selling it locally source forex to buy and thereafter sell in Naira? They just have to jack up the price! That is the problem. It is important that the government understands how and when to make the right decision to help people and alleviate suffering.
“Will that not also amount to bringing back the subsidy that the government is calling off since the price of the crude is dictated by the foreign market, where a large chunk of it goes and serves as our foreign earnings; therefore, selling it in naira will amount to subsidising the difference.
“No, no. Every country has a policy that if you are selling something to your people, it is not a subsidy. It is just a local price. The fact that it can be sold internationally at a higher price does not mean you will sell your local produce locally at an international price. I think that is part of the problem.
“That is not a subsidy; rather, it is a national government decision to set aside a domestic crude reserve of between 400,000 and 500,000 metric tons for local consumption and to be sold locally.
“That is not a subsidy. And even if it is a subsidy, so what? Is the one we have now at N600 helping the economy? Let it be, if it is a subsidy, but I don’t think it is. I think establishing a National Domestic Crude Reserve and sell it to people who are in the business of refinery so that all these shipping costs, insurance, freight, and other add-ons cost will not be added. Having done the sum, I think a naira-dominated national crude oil scheme will help to save 50 percent of the price,” Agbakoba explained.
