Nasarawa State Governor, Abdullahi Sule, don talk say the plan by African Democratic Congress presidential candidate, Atiku Abubakar, to bring back fuel subsidy if him win 2027 election no dey practicable.
Sule tok dis one on MIC ON Podcast. Him say him position come from him experience inside oil and gas industry, where him work as engineer before him become governor.
According to am, the wahala around how dem dey import and share Premium Motor Spirit, wey everybody sabi as petrol, make am hard to bring subsidy back and make e work well.
Him yarn say, ‘I come from that industry. I know the challenges of subsidy. It is not practicable to say you are going to reintroduce subsidy.’
Governor Sule mention the logistics of importing petrol. Him explain say one vessel wey carry around 30,000 metric tonnes of the product fit face delay for port because of draft limitations. Him say such vessel fit need to discharge cargo through lightering, and dat go add more time and demurrage costs.
Sule also allege say subsidy regime open door for corruption, as some people benefit from delay wey dey happen when dem dey discharge imported petroleum products. ‘Sometimes, because of the corruption with subsidy, they allow it actually to stay longer than necessary because some people make money out of that. So, the more the demurrage, the more corruption, the more some individuals have more money in their pockets,’ na wetin him talk.
The governor still question part of the old system where Nigerian National Petroleum Corporation, NNPC, dey import petroleum products and sell to marketers at subsidised prices. Him allege say some marketers wey buy products from NNPC also dey import petroleum products, and dat give dem chance to gain from the price difference.
Sule talk say same challenge dey for crude oil supply, no be only refined petroleum products. Him argue say Nigeria crude production no mean say e dey available for immediate domestic use, because part of the country future production don already commit through forward sales.
Him ask, ‘Is Dangote not importing crude oil? Do you think Nigeria has enough crude oil to give Dangote after the forward sales of oil?’
Sule add say the real matter of crude supply and forward contracts go clear to policymakers when dem enter office and see details of the industry. ‘Sometimes when you’re outside the cycle, you think the cycle is empty until you get in. Part of the production of Nigeria has been sold, forward sales long time ago. It’s when you come to office you’ll realise you don’t have the oil,’ him talk.
Atiku don talk say him own approach to petrol subsidy go base on increasing domestic production instead of subsidising consumption. But Sule still maintain say return to subsidy regime no go practicable based on the structural challenges wey him list.
