Governors of the 36 States in Nigeria have backed the federal government’s implementation of the petrol price modulation mechanism to eliminate petrol subsidy “permanently” in the country.
This decision was contained in a communiqe released in the early hours of Monday by members of the Nigeria Governors’ Forum (NGF) after a meeting on Sunday to deliberate on the COVID-19 pandemic in the country.
The communiqe, signed by Governor Kayode Fayemi of Ekiti State, who is also the NGF Chairman, also supported the unification of exchange rates into a single, market-determined window and the use of the market-determined exchange rate to calculate all revenues due to the federation.
The implementation of the new petrol price modulation mechanism means Nigerians will pay for petrol in line with the product’s prevailing price in the global market.
The Federal Government had announced a further reduction in petrol’s pump price to N123.50 per litre on April 1, 2020.
That was the second time it would be reducing the pump price of petrol in two weeks.
It had announced a reduction in the pump price on 18th March, 2020 from N145 to N125 following the fall in the price of crude oil in the international market.
At that time, the price of Nigeria’s Brent Crude was below $25 but it is now up to 33.24 as at today.
A statement by the Petroleum Products Pricing Regulatory Agency (PPPRA)’s Executive Secretary, Abdulkadir Saidu in Abuja said: “PPPRA, in line with the Government approval for a monthly review of Premium Motor Spirit (PMS) pump price, hereby announces Guiding PMS pump price of N123.50 per Litre.
“The Guiding price which becomes effective 1st April 2020, shall apply at all retail outlets nationwide for the month of April, 2020.
“PPPRA and other relevant regulatory Agencies shall continue to monitor compliance to extant regulations for a sustainable downstream petroleum sector. Members of the Public and all Oil Marketing Companies are to be guided accordingly.”
Fayemi on COVID-19 response
Fayemi also briefed State governors on ongoing coordination with the World Bank to mobilise support for States to mitigate the economic and social cost of the COVID-19 pandemic.
He said the ongoing plans include accelerated disbursement of existing and new financing for States under the State Fiscal, Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results, and mitigation and recovery support for expenditures to protect livelihoods, support local economic activity and recovery over the next 18 months to 2 years.
The forum thanked the Private Sector Coalition Against COVID-19 (CACOVID), set up by the Central Bank of Nigeria (CBN), for their pledge to support States increase their capacity to mitigate the spread of the virus and care for confirmed cases through the construction of isolation centres and the distribution of personal protective equipment to States.
Members underscored the need for CACOVID to work directly with the States in the distribution of palliatives.
The forum lauded Mr Boss Mustapha, Secretary to the Government of the Federation (SGF) and his team for the commitment in leading a national response to the COVID-19 pandemic after a briefing from him on the activities of the Presidential Task Force on COVID-19 which he chairs.
Members also stressed the need for stronger collaboration with States because they are best positioned to administer palliatives to mitigate the impact of the crisis, including the distribution of food and essential materials to households to help them cope with the expected loss of income and livelihoods.
The governors renewed the importance of canceling all deductions and deferring or restructuring all commercial debt service payments on federal government and CBN-owned debts.