Senator Dino Melaye, a chieftain of the African Democratic Congress (ADC), has argued that the high cost of petrol is a major factor behind the rising prices of goods and services across Nigeria.
Speaking on AIT’s Democracy Today programme on Monday, Melaye said the ADC’s proposed return to fuel subsidy is aimed at reducing the cost of living by lowering petrol prices from their current level of about N1,400 per litre to between N400 and N500.
According to him, the impact of expensive fuel extends beyond filling stations, affecting transportation, the movement of agricultural produce and other commodities, aviation and several other sectors of the economy.
Melaye said the ADC intends to make affordability a central part of its economic agenda, arguing that reducing fuel costs would have a wider effect on household expenses and business operations.
He also challenged the argument that fuel subsidy is inherently wasteful, maintaining that what Nigeria experienced in the past was largely corruption and diversion of public funds rather than a properly managed subsidy system.
“We are bringing back subsidies 100% because subsidies, there is nothing like subsidies. What we have is corruption,” Melaye said.
He argued that the resources currently lost through alleged corruption could instead be redirected towards reducing the burden of fuel costs on Nigerians.
The former lawmaker further questioned the government’s borrowing levels, comparing debt accumulation under former President Muhammadu Buhari, when fuel subsidy was still in place, with borrowing under the current administration.
Melaye claimed that Buhari’s administration borrowed about N87 trillion over eight years, while the current administration had borrowed about N157 trillion in three years, despite the removal of fuel subsidy.
He questioned why borrowing had increased despite the government no longer bearing the same subsidy costs.
The ADC chieftain maintained that lower petroleum prices would have a ripple effect across the economy, potentially reducing transportation and production costs and easing pressure on consumers.
