Atiku’s production subsidy: Has politics overtaken economics?, By Kayode Oladele
Atiku proposes using public resources to reduce the production cost of locally refined petrol in the expectation that the benefit will reach consumers through lower pump prices.
Tinubu’s alternative is to move government intervention away from permanently subsidising every litre of petrol consumed and towards changing the underlying economics of transportation through alternative fuels, domestic refining, infrastructure and competition.
The more sustainable course is to confront the weaknesses in the present reforms, accelerate the alternatives, expand domestic production and competition and make those reforms work for ordinary Nigerians rather than return the public treasury to the endless business of paying the difference at the petrol pump.
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