By Adedapo Adesanya
President Muhammadu Buhari has hinted that Nigerians will continue to see an increase in the pump price of petroleum products as current prices are not sustainable amid lean revenue and foreign exchange earnings.
Mr Buhari in his broadcast to Nigerians on the 60th independence anniversary on Thursday said: “Petroleum prices in Nigeria are to be adjusted. We sell now at N161 per litre. A comparison with our neighbours will illustrate the point.
He compared Nigeria’s pump price of fuel with other countries around the world and exclaimed that it does not make sense that the price of oil is cheaper in Nigeria than in Saudi Arabia.
Mr Buhari said that In the circumstances, a responsible government must face realities and take tough decisions.
He said: “Chad which is an oil-producing country charges N362 per litre, Niger, also an oil-producing country sells 1 litre at N346. In Ghana, another oil-producing country, the petroleum pump price is N326 per litre.
“Further afield, Egypt charges N211 per litre. Saudi Arabia charges N168 per litre. It makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia.”
He said that to achieve the great country that Nigerians desire, “we need to solidify our strength, increase our commitment and encourage ourselves to do that which is right and proper even when no one is watching.”
The President said Nigeria suffered a significant drop in foreign exchange earnings and internal revenues due to 40 per cent drop in oil prices and a steep drop in economic activities as a result of the COVID-19 pandemic.
These developments, he said, led to a 60 per cent drop in government revenue.
“In this regard, sustaining the level of petroleum prices is no longer possible,” he said.
“The government, since coming into office has recognized the economic argument for adjusting the price of petroleum. But the social argument about the knock-on effect of any adjustment weighed heavily with the government.
“Accordingly, in the last three years, we have introduced unprecedented measures in support of the economy and to the weakest members of our society in the shape of Tradermoni, Farmermoni, School Feeding Programme, job creation efforts, and agricultural intervention programmes.
“No government in the past did what we are doing with such scarce resources. We have managed to keep things going in spite of the disproportionate spending on security. Those in the previous Governments from 1999 – 2015 who presided over the near destruction of the country have now the impudence to attempt to criticize our efforts,” the President said on Thursday.
Last month, as the government’s deregulation policy kicked off, petrol prices rose with Nigerians buying as high as N165 per litre at the pump.
Dipo Olowookere