The Central Bank of Nigeria, in its economic report for November 2019, for instance, confirmed the appreciation in crude oil price. The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told one of our correspondents on Thursday that the rise in oil price meant that petrol subsidy would increase. He said, “Even if the price of oil increases to $90, as long as the pump price of petrol remains at N145 per litre, the government must continue to subsidise the product. “We are consistent in our view that the subsidy payment or subsidy in the petroleum downstream sector degrades operational efficiency and economics of the downstream sector. But the government later resorted to subsidy regime following the increase in the landing cost of petrol on the back of rising crude oil prices.

Source: Punch December 26, 2019 23:48 UTC