Oyo State Governor, Seyi Makinde, has called for a fundamental rethink of Nigeria’s petroleum pricing system, arguing that citizens should not be made to bear additional costs arising from the government’s inability to secure the country’s borders and prevent fuel smuggling.
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Makinde made the call in the latest edition of his newsletter, The Business of Governance, where he said the national debate on fuel subsidy had been wrongly framed as a simple choice between subsidising petroleum products and allowing Nigerians to pay full market prices.
According to the governor, the more important question is whether Nigeria, as an oil-producing country, has a pricing framework that is fair, transparent and structured in a way that allows citizens to derive meaningful benefit from the natural resources they collectively own.
“For years, the debate in Nigeria has largely been presented as a choice between subsidising petroleum products or allowing Nigerians to pay the full market price.
“I believe we are asking the wrong question. The more important question is: what is the right pricing framework for an oil-producing country like Nigeria?” Makinde said.
He argued that Nigerians deserve to know the exact components used in determining the pump price of petroleum products, including the crude oil benchmark, refining costs and margins, exchange-rate assumptions, logistics and distribution costs, taxes, levies and other variables.
“What Nigerians deserve to know is the current pricing framework and the assumptions that determine what we pay at the pump: the crude price benchmark, refining costs and margins, exchange-rate assumptions, logistics and distribution costs, taxes and levies, and the other variables included in that calculation,” he said.
Makinde said making those components public would allow citizens to properly understand, question and assess the basis for petroleum pricing in the country.
The governor also rejected the argument that Nigerians should pay higher petrol prices simply to eliminate the price gap between Nigeria and neighbouring countries and thereby discourage smuggling.
According to him, border security is a core responsibility of government and citizens should not be penalised because the state is unable to stop petroleum products from being illegally moved across the country’s borders.
“We should also reject the argument that Nigerians must pay more for petroleum products simply to eliminate the price difference that makes smuggling into neighbouring countries profitable.
“Nigerians should not be made to bear the cost of government’s inability to secure its borders,” Makinde said.
He disclosed that he would, in the coming weeks, present what he described as an alternative approach to Nigeria’s petroleum pricing system, urging Nigerians to assess the proposal on its merits.
Makinde maintained that the debate should move beyond whether subsidy should return or remain removed and instead focus on whether the existing pricing model is suitable for Nigeria’s peculiar economic circumstances.
“Reset Nigeria means being willing to interrogate the system itself. The petroleum question should therefore not simply be whether subsidy should return or remain removed.
“It should be whether the pricing system we are using is the right one for Nigeria and whether it allows Nigerians to derive a fair benefit from the natural resources they own,” he said.
The governor linked the petroleum pricing debate to a broader initiative he described as “Reset Nigeria,” which he said would address not only the economy but also security, education, institutions and the country’s wider social and political structure.
Makinde argued that Nigeria’s challenges could not be solved merely by changing individuals in government, saying deeper reforms were required to correct systems and institutions that repeatedly produce poor outcomes.
“Too many of our people are still trapped in poverty. Too many families work hard without experiencing real progress. Too many young Nigerians are unable to see a clear path from education to opportunity,” he said.
He added that insecurity and weak institutions continued to undermine the wellbeing and economic prospects of Nigerians, stressing that lasting change would require both accountable leadership and active citizen participation.
“This will not be an instant transformation, nor will it be the work of one person. It must be a deliberate national effort supported by a clear roadmap, measurable priorities and the sustained participation of Nigerians at home and abroad,” Makinde said.
The governor said he would continue to outline his proposals for reforming Nigeria’s economy, security architecture, education system, institutions and political order, while inviting Nigerians to contribute to the wider conversation on areas that should receive priority attention.
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