The suggestion was given by Special Advisor to the President on Energy, Mrs. Olu Arowolo Verheijen, during a weekend press conference.
There are allegations that the Tinubu-led Nigerian government is continuing to subsidize the cost of premium motor spirit, or PMS, also referred to as petrol, even after declaring that the subsidies will be removed.
Verheijen pointed out that the federal government is entitled to control the nation’s PMS prices.
The presidential adviser said that in order to maintain price stability and prevent societal unrest, it is the right of all governments to periodically intervene in vital economic sectors.
No government in the world, in her opinion, will permit the prices of necessities to fluctuate uncontrollably and increase inflation in the absence of some sort of intentions
“The subsidy was removed on May 29, 2023. However, the government has a prerogative, whether in the US, in the West, or in Asia, all of them have a prerogative to maintain price stability.
“All governments have the prerogative to maintain price stability and not allow prices to fluctuate. If prices fluctuate, they reserve the right to intervene to avoid social unrest. Even in the US, during the COVID, there were a lot of expressionist groups, and there were also subsidies.
“All governments deserve that right. And so, if the administration determines that due to the hardship in the country, it is not the right time to allow prices to continue to fluctuate and cause inflation, the government has to intervene intermittently, but it does not remove the fact that subsidy was removed.”
DAILY POST recalls that on May 29, the Nigerian Government removed fuel subsidies, which saw petrol pump prices rise to between N600-N670 per litre.
Meanwhile, the pump price has been relatively stable since last year, indicating another subsidy intervention.
The International Monetary Fund said Nigeria’s fuel and electricity subsidies in 2024 are estimated to gulp N7 trillion.
