A former presidential aide, Dr. Doyin Okupe, has voiced his opposition to Africa’s richest man, Alhaji Aliko Dangote’s proposal for the complete removal of fuel subsidy.
Okupe spoke with journalists on Tuesday in Lagos.
Dangote, who operates a 650,000 barrels per day crude oil refinery in Lagos, had urged the Federal Government in a Bloomberg interview to fully remove fuel subsidy because it cost the country trillions of naira.
In response, Okupe said: “With utmost respect, I disagree with Aliko Dangote on his suggestion that the government should completely end subsidy now. Petrol is the economic oxygen of Nigerians, whether rich or poor. This is not the situation in other countries of the world.”
He emphasized that the emergence of local refineries necessitates some support for the populace. “With the allocation of 450,000 barrels a day for local consumption, Nigeria can combine the advantage of local production with local consumption and determine the price to sell crude to local refineries,” he explained.
Okupe suggested that leveraging local refineries could ensure a stable fuel supply. “We can use opportunities that these local refineries avail us, ensuring adequate fuel supply with the dedicated or allocated daily crude oil for local consumption, which is outside OPEC quota. So, whatever we do with it is our internal affairs; it is a way of providing some level of comfort.”
He proposed a pricing strategy: “For instance, the price of Nigerian crude per barrel is $77; we can decide to sell to Dangote refinery at $35 or $37 per barrel. By adjusting processing fees and profit margins, the pump price of petroleum could realistically drop to N500 or N600 per litre. This will definitely bring a major relief, comfort, and succor to the masses.”
Okupe also pointed out that halting the importation of petroleum products would alleviate pressure on foreign exchange demands by 40 percent, providing much-needed economic relief. “This will give economic oxygen to Nigerian people, encouraging enterprises and local businesses because we all in Nigeria, rich and poor, depend on petrol as an economic oxygen. Every nation has a sector where it stands behind the people,” he added.
Furthermore, he praised President Bola Tinubu’s administration for its bold measures regarding fuel subsidies, stating, “The President had done a great job by courageously removing subsidies and eliminating multiple exchange rates. His reforms have taken root in the economic system.”
Okupe lauded the bravery of the President, saying, “It is something very brave that no other previous administrations have had the courage to go through it. What the President did was actively like biting the bullet, and he has been courageous enough to persevere and persist through it.”
Reflecting on the potential benefits of local refineries, he concluded, “Having done it for more than a year, my feeling and belief is that we have made enough gains, and because these refineries are upstream, we can consolidate on those gains and release the pressure on the masses a little bit. Fortune has played in our hands by the coming upstream of the Dangote refinery, Port Harcourt refinery, and other refineries that will follow.”
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