AN OPEN LETTER TO PRESIDENT BOLA AHMED TINUBU, GCFR |•By Michael Akamo
A practical way to reduce fuel prices without fuel subsidy
Your Excellency,
I write as a concerned Nigerian who believes strongly in the capacity of your administration to take bold and innovative steps to improve the welfare of the Nigerian people.
Nigeria is currently facing significant economic pressure as a result of global uncertainties, including the ongoing geopolitical tensions and wars affecting energy markets. These developments continue to drive volatility in crude oil prices and, by extension, the cost of refined petroleum products around the world. Unfortunately, ordinary Nigerians bear the greatest burden whenever fuel prices rise.
Your administration took a courageous step by removing the fuel subsidy, a policy that had long strained the nation’s finances. While this decision was necessary for fiscal sustainability, the challenge now is how to ensure that Nigerians still enjoy affordable petroleum products without returning to the costly subsidy regime.
One practical and patriotic solution is for the Federal Government to consider supplying crude oil to the Dangote Refinery at a strategically discounted price for domestic refining.
Such a policy would produce several important benefits:
1. Reduced Pump Prices:
If crude oil is supplied to the refinery at a concessionary rate for domestic consumption, the refinery will be able to sell petrol, diesel, and aviation fuel to Nigerians at significantly lower prices.
2. No Need for Fuel Subsidy:
Instead of paying trillions of naira in subsidy to importers, the government would simply provide crude at a domestic discount. This would achieve the same objective—affordable fuel—without the massive fiscal burden.
3. Strengthening Local Refining Capacity:
Supporting local refining will reduce Nigeria’s dependence on imported fuel, conserve foreign exchange, and stabilize the energy market.
4. Economic Relief for Nigerians:
Lower fuel prices will reduce transportation costs, ease inflationary pressures, and improve the purchasing power of millions of citizens.
5. National Strategic Advantage:
Encouraging domestic refining ensures energy security and positions Nigeria as a major refined petroleum supplier within Africa.
Your Excellency, this approach represents a market-supporting alternative to subsidy, one that empowers local industry while protecting Nigerian consumers.
The Dangote Refinery is a historic private investment that has the potential to transform Nigeria’s downstream petroleum sector. With the right government policy support, it can become a powerful tool for stabilizing fuel prices for Nigerians.
At this critical moment in global energy politics, Nigeria must prioritize policies that place the welfare of its citizens at the center while promoting local capacity and economic resilience.
I respectfully urge your administration to consider this strategic option for the benefit of the Nigerian people.
May your leadership continue to guide Nigeria toward prosperity and stability.
Yours faithfully,
Michael Akamo
Concerned Nigerian Citizen.