FG Urged to Reintroduce Fuel Subsidies Amid Price Surge

The Federal Government of Nigeria has been urged to consider the reintroduction of fuel subsidies in light of ongoing upheaval in the Middle East and skyrocketing global oil prices, which have driven domestic fuel prices to N2000 per liter. Joe Nwakwu, a partner at Zera Advisory Consult and a former president of the Society of Petroleum Engineers, made this recommendation during a webinar hosted by the Major Energy Market Association of Nigeria on Tuesday.

He explained that temporary measures are necessary to shield the Nigerian economy from global oil price volatility. Nwakwu also highlighted the importance of defining a clear exit clause for when oil prices decrease, as this would alleviate stress on the economy.

Furthermore, he stressed the need for Nigeria to revamp its crude oil pricing mechanisms and protect the economy against global oil shocks, advocating for strengthened regulatory institutions to ensure adherence to operational rules within the country's oil and gas industry.