The Federal Government has credited the economic reforms of President Bola Tinubu’s administration for the cost of petrol in the country, saying the price for the essential commodity is 50 per cent lower than the global average.
According to the Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, who spoke on Tuesday, Nigeria enjoys a lower cost of petrol in comparison with other countries.
“People complain that the pump price is expensive, but as a data-driven student of economics, I brought the facts,” Adedeji told a gathering during the commissioning of the NRS headquarters in Abuja.
“The price of petrol in Nigeria is approximately $0.88 per litre. In the United States, it is $1.70 (22% higher); in India, it is 25% higher; and in South Africa, it is 35% higher. Globally, our prices are 50% lower because you allowed local refineries to work.”
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‘Supply is Stable’
On his inauguration, Tinubu ended the payment of subsidy on petrol, a move that pushed the cost of the product from below N200 to almost N1,000 per litre.
Since the Middle East war a few months ago, however, prices have soared to above N1,200 per litre, depending on the location.
Adedeji, however, assured that with the Dangote Refinery fully on stream, Nigeria’s energy security is guaranteed.
“Mr President, if those difficult decisions hadn’t been made, petrol supply security would be non-existent,” he said.
“We would be facing massive queues, and fuel would be both expensive and unavailable. Today, supply is stable because it is easier to wait for deliveries from Lekki [Dangote Refinery] than to wait for imports from Europe.”
‘You made the impossible possible’
He lauded the Naira-for-Crude policy of the Federal Government, saying it moved Nigeria from a net importer to a net exporter of petroleum products.
“I have studied political philosophy and economic history, and I know of no other instance where a nation sold its primary resource in its own local currency rather than a foreign reserve currency.
“I remember vividly that Sunday when you [Tinubu] called me and said, ‘Zacch, get your pen; I want to sell crude in Naira.’
“I replied, ‘Mr President, crude is always benchmarked in dollars.’ You insisted, ‘Go and do this.’ You made the impossible possible. Because of that vision, we have no queues today.
“We have moved from being a net importer to a net exporter, with reports showing Aliko [Dangote] supplying 17 cargoes to other African countries.”
