The governors of the 36 states of the federation are canvassing a novel initiative that will see each state taking responsibility for subsidising petroleum products consumed within its territory.
Arising from their discontent over the claim by the Nigerian National Petroleum Corporation (NNPC) that it supplies a ridiculous 60 million litres of petrol daily to the domestic market, the governors are contending that instead of deducting the difference between the landing cost of petrol and the official pump price of the product before remitting net crude oil receipts to the Federation Account, every state should be responsible for paying its own subsidy according to its consumption.
The push by the governors to take over the responsibility of paying subsidy payments on fuel in their respective states could prove to be a major solution to the inefficiency and graft that has characterised fuel imports and consumption in the country for decades.
Other than the crippling impact fuel subsidies have had on the treasury, the shortfall in remittances by NNPC to the Federation Accounts often leaves the three tiers of government sharing less revenue than actual oil receipts accruing to the coffers of the state-run oil firm.
THISDAY, May 18, 2018
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