President Muhammadu Buhari has been advised by the Presidential Economic Advisory Council to remove subsidy on petrol.
The council that was set up by Buhari in 2019 also advised the President to adopt a pricing regime that reflects the cost of the commodity.
Chaired by Prof Doyin Salami, the council replaced the Vice President Yemi Osinbajo-led Economic Management Team and saddled with the responsibility of advising the President on matters relating to economy such as fiscal analysis, and economic growth.
The committee advised Buhari to remove the fuel subsidy at its sixth regular meeting with the President last Friday.
At the meeting, the committee also called for the adoption of a pricing regime that reflects the cost of petrol.
The document released at the meeting read, “Council advises as follows: there is an urgent need for clarity and consistency in petrol pricing policy.
“Subsidy on petrol be removed and a pricing regime which reflects the cost of petrol adopted.
“It is noteworthy that with the exception of petrol, the prices of all other petroleum products have been deregulated; the cost of retaining the subsidy outweighs the benefits, or that the benefits of removing the subsidy are far greater than the costs.
“Data published by the National Bureau of Statistics also show that petrol prices are not the same across Nigeria.
“In March 2021, petrol prices range between N162.17 and N200.87/litre –the highest being in Lagos State whilst the lowest prices are obtained in Adamawa State.
“Council is especially concerned that in addition to further worsening government revenue, re-introduction of subsidies will jeopardise investment in the oil sector and also create uncertainty about general government policy on pricing.”