By Musa Abdullahi Sufi
Pricey President Bola Ahmed Tinubu,
I write this letter with a way of urgency, motivated by my latest experiences and the struggles Nigerians are going through because of the hovering value of gas. In the midst of my voluntary and humanitarian work, I traveled throughout three states from Kano—first to Daura in Katsina, then to Jigawa, and eventually to Kaduna—returning every time to Kano. Inside only one week, I spent over ₦200,000 on gas alone.
To compound my ordeal, a few of the gas bought was diluted, damaging my automobile and incurring further restore prices.
This case mirrors the financial actuality hundreds of thousands of Nigerians are grappling with every day, because the rising value of gas will increase transportation bills, triggers inflation, and weakens family buying energy. Nevertheless, I consider, with strategic reforms and a well-coordinated strategy, Nigeria can obtain a goal gas worth beneath ₦200 per liter.
On this open letter, I current sensible options that may assist make inexpensive gas a actuality by addressing focused subsidies, native refining, environment friendly provide chains, foreign exchange stability, deregulation, and the promotion of different vitality.
Reintroducing Smarter Gasoline Subsidies
Your Excellency, whereas the elimination of subsidies was essential to curb inefficiencies, I urge you to contemplate focused subsidies as a extra sustainable various. Blanket subsidies pressure the economic system, however centered subsidies can straight profit important sectors like public transportation, agriculture, and healthcare.
• Sectoral Subsidies: Direct gas subsidies for buses, tractors, and healthcare amenities will cut back operational prices and enhance service supply.
• Digital Monitoring Mechanisms: Using superior digital monitoring will guarantee subsidies attain the supposed sectors, minimizing corruption and stopping misuse.
Although subsidies include fiscal challenges, restructuring the nationwide price range and slicing wasteful spending could make this initiative viable.
Boosting Native Refining Capability to Scale back Import Prices
Nigeria’s reliance on imported gas makes costs susceptible to world oil market fluctuations and trade charge instability. To interrupt this cycle, the federal government should prioritize native refining.
• Operationalize Refineries Shortly: Quick-track the efficient operations of the Dangote Refinery and assist modular refineries to spice up native gas manufacturing.
• Scale back Import Bottlenecks: Native refining will eradicate prices related to import tariffs, transport, and distribution, probably driving costs beneath ₦200 per liter.
By creating an enabling setting for traders by means of incentives and slicing bureaucratic pink tape, Nigeria can strengthen its refining sector and cut back gas import dependency.
Streamlining the Provide Chain by Decreasing Middlemen
The present gas distribution system entails a number of intermediaries, main to cost inflation. A direct and clear provide chain is important to cut back prices.
• Direct Distribution Channels: Encourage refineries to provide gas on to retailers, slicing out pointless middlemen.
• Regulatory Oversight: Strengthen monitoring of depots and entrepreneurs to forestall hoarding, smuggling, and the creation of synthetic shortage.
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A simplified provide chain will improve effectivity, eradicate speculative pricing, and make gas extra inexpensive for customers.
Stabilizing the Naira with Sound Foreign exchange Insurance policies
As Nigeria imports a good portion of its gas, trade charge fluctuations straight affect gas costs. Stabilizing the Naira will ease this burden.
• Strengthen the Economic system: Implement insurance policies to diversify the economic system, easing strain on overseas reserves and stabilizing the trade charge.
• Encourage Foreign exchange Inflows: Incentivize overseas investments and promote export-driven industries to enhance Nigeria’s steadiness of funds.
With a steady trade charge, the price of importing gas will drop, benefiting each entrepreneurs and customers.
Deregulating the Market to Foster Competitors
A aggressive gas market will promote effectivity, innovation, and decrease costs. Though deregulation comes with challenges, it presents a chance for sustainable development.
• Promote Truthful Competitors: With extra gamers available in the market, corporations will try to offer higher companies at aggressive costs.
• Incentivize Investments: Supply tax breaks, grants, and low-interest loans to draw non-public sector traders, increasing the gas sector.
By fostering a free market, Nigeria can create a win-win situation the place suppliers compete, and customers profit from decrease costs.
Selling Different Vitality to Ease Market Stress
Over-reliance on petrol is unsustainable. Encouraging the adoption of different vitality sources will cut back demand and assist stabilize gas costs.
• Undertake Compressed Pure Gasoline (CNG): CNG is cheaper, environmentally pleasant, and plentiful in Nigeria, making it a viable various to petrol.
• Spend money on Renewable Vitality: Develop photo voltaic, wind, and biomass tasks to diversify Nigeria’s vitality combine and cut back dependence on fossil fuels.
As extra customers change to various vitality options, the demand for petrol will drop, easing strain on the gas market and selling affordability.
Balancing Commerce-offs for Lengthy-term Advantages
Attaining a gas worth of lower than ₦200 per liter would require a fragile steadiness between coverage, market dynamics, and long-term investments.
Decreasing taxes and reintroducing focused subsidies might have an effect on short-term income, however the constructive affect on the lives of residents will foster long-term financial development.
Your administration should prioritize refining capability, stabilize the trade charge, streamline the provision chain, and promote various vitality to construct a resilient vitality sector.
Steady engagement with stakeholders—oil entrepreneurs, transport unions, and civil society—is important to make sure clean coverage implementation.
A Name to Motion
Mr. President, daring management is required to steer Nigeria in the direction of a future the place inexpensive gas is a actuality. With the correct insurance policies, dedication, and political will, attaining gas costs beneath ₦200 per liter isn’t solely doable—it’s inside attain.
I urge you to take decisive steps to reform the vitality sector and ease the burden on Nigerians. Collectively, we are able to create a sustainable vitality future the place excessive gas costs not hinder financial development and the well-being of the individuals.
Sir, together with your management, Nigeria can remodel its vitality sector and set a precedent for different African nations to observe.
Respectfully,
Musa Abdullahi Sufii,
Improvement Journalist