Former Presidential Aspirant Lashes Out at President Buhari Over Oil Sector Reforms

Strategic Insights -

Sam Ohuabunwa, a former Presidential aspirant on the Peoples Democratic Party (PDP) platform, has publicly criticized President Muhammadu Buhari for his administration's handling of price control in the oil and gas sector. Ohuabunwa, who is also a former President of the Manufacturers Association of Nigeria, argues that the government's inability to enforce price control has resulted in the deregulation of the oil sector, causing shortages and exorbitant prices for Nigerians. He further claims that the government is being deceitful by announcing the end of subsidy payments in June, when they would have ended their tenure.

Key Takeaways:

  • The oil sector has effectively been deregulated, with prices varying widely across different filling stations and locations in Nigeria.
  • The government has paid lip service to the issue, with President Buhari and the Oil Minister apparently unable to enforce price control.
  • The former Presidential aspirant estimates that N3.5 trillion, budgeted for the first six months of this year, could be saved if the government formally announces the deregulation of the oil sector.
  • An official deregulation would allow more companies to import fuel, ease scarcity and inflationary pressures, and potentially transform Nigeria's infrastructure, education, and healthcare systems.
  • Nigerians are speculating that the N3.5 trillion subsidy budget has been put in place for electoral purposes or official send-offs and parting gifts, but Ohuabunwa believes that the government should "come clean" and announce the deregulation of the oil sector.

Statistics:

  • As of January 6th, prices of petrol ranged from N240 per liter in Benin to N500 per liter in Port Harcourt, with varying prices across different filling stations.
  • The proposed N3.5 trillion subsidy budget for the first six months accounts for nearly 15% of the entire 2023 capital budget, which stands at N5.9 trillion.
  • N3.5 trillion could potentially be spent on various infrastructure projects, including road construction, or used to transform Nigeria's educational and healthcare systems.

Sources:

  • Sam Ohuabunwa's statement, signed and made available to journalists on January 8th (THEWILL).