The Centre for Social Justice (CSJ) has urged the Federal Government to reduce the pump price of petrol to about N800 per litre, with a medium-term plan to bring it down to between N400 and N500.
The organisation said the government’s proposed price modulation mechanism, which seeks to stabilise petrol prices at no more than N1,350 per litre, fell short of Nigerians’ expectations amid rising living costs and economic hardship.
In a statement titled “A Reasonable Price for PMS and Other Petroleum Products in Nigeria,” the Lead Director of CSJ, Eze Onyekpere, said Nigerians were paying heavily for the removal of fuel subsidy without receiving the promised benefits.
Onyekpere noted that before the outbreak of the America-Israel-Iran war, petrol sold for about N800 per litre, arguing that any relief measure should return prices to that level before further reductions were pursued.
He said the removal of the subsidy had not stopped the Federal Government from borrowing heavily or struggling to fund the budget, while corruption in the petroleum sector remained a major concern.
According to him, crude oil theft and other forms of corruption in the sector continue to drain public resources, despite the government’s claim that subsidy removal would free up funds for infrastructure, security and human capital development.
The CSJ director also questioned the Nigerian National Petroleum Company Limited’s expenditure of more than $8bn on what he described as an undefined “energy security” initiative.
He warned that high energy costs had far-reaching consequences for the economy, affecting transportation, logistics, food prices, electricity supply, manufacturing, processing and public service delivery.
Onyekpere added that expensive fuel worsened inflation, reduced productivity, deepened poverty and widened inequality, while lowering the standard of living of Nigerians.
To reduce petrol prices, he called on the Federal Government to introduce a domestic crude oil pricing mechanism linked to an agreed policy price for petroleum products and the country’s prevailing economic conditions.
He argued that such a mechanism could make crude oil available to domestic refineries at prices below international market rates, thereby reducing the cost of refined products.
The organisation also urged the government to determine, based on empirical evidence, the volume of crude oil required daily by local refineries to meet Nigeria’s demand for refined petroleum products.
Onyekpere said the calculation should take into account the fact that crude oil produces more than 21 derivatives, beyond petrol, diesel, kerosene and aviation fuel.
He further called for measures to prevent the smuggling and diversion of refined petroleum products out of the country, urging the authorities to strengthen border surveillance.
The CSJ director also asked the government to concession the four refineries owned by the NNPC to investors with the technical expertise, financial capacity and managerial competence to commence refining operations without delay.
He called for the recovery of funds allegedly misappropriated under the guise of refinery turnaround maintenance, particularly the $3bn he said was stolen during the administration of former President Muhammadu Buhari.
Onyekpere maintained that reducing petrol prices was financially feasible, citing the Federal Government’s reported savings of N15.8tn between June 2023 and December 2025.
He said the amount represented average annual savings of N6.32tn and argued that a 50 per cent subsidy arrangement would involve foregoing about N3.16tn annually.
According to him, the expenditure or revenue forgone by the three tiers of government would be justified if it resulted in a 50 per cent reduction in fuel prices and eased the hardship faced by Nigerians.
He described such an intervention as a worthwhile investment in citizens’ welfare, arguing that its benefits would outweigh what he called the pursuit of abstract macroeconomic gains without corresponding improvements in living conditions.
The CSJ director said the government should consider alternatives to the complete removal of fuel subsidy, stressing that the country could not justify withholding relief from citizens while foregoing substantial revenue through other fiscal measures.
He cited the reported N34tn in import duties waived in a year, arguing that the government should be able to consider an annual intervention of about N3.12tn to reduce the hardship associated with the removal of fuel subsidy.
Onyekpere called for a review of the government’s approach to petroleum pricing, insisting that policies on fuel costs should reflect the economic realities of ordinary Nigerians.
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