Independence Day: It Makes No Sense For Oil To Be Cheaper In Nigeria Than Saudi Arabia – Buhari

By Florence Cornelius Last updated Oct 1, 2020

President Muhammadu Buhari has defended the current price of fuel in the country, stating that a responsible government must face realities.

In his Independence Day Speech on October 1, President Buhari stated that while petroleum prices are to be adjusted, the government must take tough decisions.

He stated;

Fellow Nigerians, in addition to public health challenges of working to contain the spread of the Coronavirus, we have suffered a significant drop in our foreign exchange earnings and internal revenues due to 40 per cent drop in oil prices and steep drop in economic activities, leading to a 60 per cent drop in government revenue.

The president compared the oil price in Nigeria to those of neighbouring countries, arguing that it makes no sense for oil to be cheaper in Nigeria than it is in other oil-producing nations.

Buhari said;

Our government is grappling with the dual challenge of saving lives and livelihoods in face of drastically reduced resources.

In this regard, sustaining the level of petroleum prices is no longer possible. The government, since coming into office has recognized the economic argument for adjusting the price of petroleum. But the social argument about the knock-on effect of any adjustment weighed heavily with the government.

The President expressed;

Petroleum prices in Nigeria are to be adjusted. We sell now at N161 per litre. A comparison with our neighbours will illustrate the point;

Chad which is an oil-producing country charges N362 per litre

Niger, also an oil-producing country sells 1 litre at N346.

In Ghana, another oil-producing country, the petroleum pump price is N326 per litre.

Further afield, Egypt charges N211 per litre. Saudi Arabia charges N168 per litre.

It makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia.

Also in his speech, President Buhari called for a sincere process of national healing as the nation marks the 60th anniversary of its independence from Great Britain.

The healing, the President said, is necessary as the nation has consistently focused on “contrived fault-lines” that have been “allowed unnecessarily to fester”.

He stressed;

We need to begin a sincere process of national healing and this anniversary presents a genuine opportunity to eliminate old and outworn perceptions that are always put to test in the lie they always are.

Buhari argued that to achieve a desired great country, the nation needs to solidify its strength, adding that the citizens must increase their commitment and encourage each other to do that which is right and proper even when no one is watching.