
Adaobi Rhema Oguejiofor
The Executive Secretary and Chief Executive Officer (CEO) of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, has announced that the Organization has commenced a study in order to determine the actual consumption of petrol in Nigeria, stressing that the high petrol consumption figures, which are being released by some government agencies were incorrect.
Orji disclosed this in Abuja on Tuesday while speaking to journalists on the sidelines of the Stakeholders Validation Workshop on the 2022 Annual Progress Report for Nigeria’s Extractive Industries. He also advised the Federal Government not to go back on its decision to end petrol subsidy, despite the numerous opposition against the move.
According to him, those entertaining thoughts of a possible reintroduction of the crippling subsidy payment era should perish the dream as the conversation now should be on how to channel funds that have been saved from subsidy into developing infrastructure, boosting energy, improving security and the general well-being of Nigerians.
In his own words, “for a very long time, my disposition has been for the removal of subsidy. And this government, right from day one has taken that bold step. There shouldn’t be any going back. We should move forward from there and then put in place a robust arrangement that will show a clear departure from the way and manner we have operated under subsidy. Nigerians want to see what will change when the subsidy is no more.
“And we have highlighted this because we know that subsidies put a lot of obstacles on transparency and accountability in the management of revenues from the oil and gas industry over the years.”
Orji stated that the Organization knew that subsidy removal would bring up a lot of other issues, adding that one of the issues that was anticipated is the actual consumption figure of petrol. He said that the Organization believes that the figures that are being thrown up as daily consumption of petrol in Nigeria are not very correct.
“We think we need to have an empirical figure and that is why NEITI is commissioning a study on the actual Premium Motor Spirit (PMS) consumption in Nigeria. We have every reason to believe that the figures may be less than what is being projected and the removal of subsidy has also removed all the incentives for hiking this figure in a manner that lacks empirical and logical reason.
“So the removal of subsidy will remove a lot of uncertainty and suspicion in budgeting based on estimates. That is why subsidy removal is a very fundamental policy shift that needs to be sustained,” he added.
The CEO, however, noted that some steps should be put in place in order to cushion the immediate effects that subsidy removal had brought on the very vulnerable less privileged citizens of the country, who are spread across both the working and non-working class.