2027: Makinde Rejects Subsidy, Proposes Cheaper Domestic Crude Pricing

Oyo State Governor and Allied Peoples Movement presidential candidate, Seyi Makinde, has rejected calls to restore fuel subsidy, proposing instead that crude oil supplied to Nigerian refineries should be priced more favourably to reduce petrol costs.

Makinde stated this on Monday in Abuja while speaking at the commissioning of the APM presidential campaign office as he outlined his economic agenda ahead of the 2027 presidential election.

The governor said his proposal should not be interpreted as a return to the old subsidy regime. Rather, he argued that Nigeria should take advantage of its status as an oil-producing country by ensuring that crude supplied to domestic refineries reflects the benefits of local production.

His position comes amid renewed debate over petrol prices and the economic consequences of the subsidy removal announced by President Bola Tinubu on May 29, 2023.

Former Vice-President Atiku Abubakar, who is also seeking the presidency in 2027, has proposed restoring fuel subsidy as a way of easing the burden of high petrol prices on Nigerians.

Makinde, however, questioned why crude produced in Nigeria and supplied to local refineries should be priced as though it had been imported from another country.

He argued that the benefit of Nigeria’s natural resources should be incorporated into the petroleum pricing system from the beginning rather than provided through what he described as opaque interventions after costs and inefficiencies have accumulated.

Using an agricultural analogy, Makinde said people in a community that produces food should not be forced to pay as though the food had travelled from another country before reaching them.

He maintained that Nigeria’s oil wealth must provide a measurable benefit to citizens, particularly through a transparent petroleum pricing framework.

The APM candidate also called for greater transparency across the petroleum value chain, saying Nigerians should be able to understand what they are paying for, who receives the money and where inefficiencies are increasing the final price of petrol.

Makinde said his proposed “Reset Nigeria” agenda would focus on creating systems that are transparent and accountable while ensuring that the country’s natural resources translate into better living conditions.

He urged Nigerians to participate in the national conversation ahead of the 2027 election, arguing that citizens should have a greater role in determining how the country’s resources and economy are managed.

Makinde said the objective was not simply to debate whether subsidy should return, but to establish a pricing system suitable for an oil-producing country.