NGF has supported full deregulation of the petroleum downstream sector.
Gatekeepers News reports that the Nigeria Governors’ Forum (NGF) has thrown its weight behind full deregulation of the petroleum downstream sector and proposed a pump price of around N385 per litre.
The resolution was made virtually on Wednesday following a recommendation made by a committee chaired by Governor Nasir el-Rufai of Kaduna State, Northern Nigeria.
Gatekeepers News gathered that the committee also suggested that the Federal Government should purchase113 buses to mitigate the outcomes of the price hike.
The committee’s report is, however, subject to final endorsement by the National Economic Council (NEC) which is headed by Vice President Yemi Osinbajo. NEC will meet today, Thursday and it is expected to deliberate on the matter among others.
Gatekeepers News reports that the six-man committee was established by NEC earlier this year to look into the dwindling revenues of states and tender recommendations to the council.
Members of the committee alongside el-Rufai are Governors Godwin Obaseki of Edo State; Kayode Fayemi of Ekiti State; David Umahi of Ebonyi State; Godwin Emefiele of the Central Bank of Nigeria (CBN); and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari.
The four State governors, represented by el-Rufai, presented their reports to their colleague who endorsed the full deregulation of petrol.
According to the communiqué released after the meeting, el-Rufai disclosed that between N70 billion and N210 Billion is used monthly to subsidise the petrol price at N162 per litre.
The top users of petrol as identified by the committee are Lagos, Oyo, Ogun, Rivers and Abuja.
Gatekeepers News gathered that the Kaduna Governor said that the hike in the cost of petrol to N385 per litre would help cushion the raising smuggling of the product to neighbouring countries.
El-Rufai also expressed optimism that if petrol sells at N385 per litre, the Federation Accounts Allocations Committee (FAAC) would earn between N1.3 trillion and N2. 2.3 trillion per annum.
The committee further advised the Federal Government to sell the three refineries after rehabilitation.
