Centre for the Promotion of Private Enterprise warns against return of fuel subsidy
By Dr Muda Yusuf The Centre for the Promotion of Private Enterprise [CPPE] says returning petrol subsidy will cost Nigeria approximately ₦20 trillion yearly. It could also plunge the country into a deeper fiscal, debt and foreign exchange crisis, CPPE CEO Dr. Muda Yusuf, said in a policy position obtained on Sunday. According to him, using an estimated fuel consumption benchmark of 50 million litres per day and an indicative subsidy requirement of ₦1,050 per litre, the potential fiscal exposure would be approximately: ₦52.5 billion daily, ₦1.575 trillion monthly, ₦19.16 trillion annually — approximately ₦20 trillion. The actual figures would fluctuate with crude oil prices, exchange rates, landing costs and consumption levels, he said. He stated that although actual costs would vary with consumption, crude-oil prices, exchange rates, refinery or landing costs and the regulated pump price, consumption could also increase under a subsidy regime as price differen...