FENRAD condemns fuel price hike, urges FG to license local refineries

The Foundation for Environmental Rights, Advocacy and Development (FENRAD) has strongly condemned the current fuel price regime in Nigeria.

It described it as a burden on the poor and a clear indication of the government’s lack of understanding of the trends in the petroleum sector.

FENRAD, in a statement released on Saturday and made available to Diaspora Digital Media, expressed doubt over the government’s ability to address the challenges facing the petroleum sector.

It cited the contradictory policy statements and actions of the government and its agencies.

“The federal government removed subsidy on petrol, causing hardships on all Nigerians, and when it became clear that the federal government is still subsidizing the NNPC through under-recovery, it still kept everything undisclosed,” the press statement signed by Comrade Nelson Nnanna Nwafor, Executive Director of FENRAD, reads in part.

FENRAD also criticized the government’s handling of the Dangote refinery, saying that the decision to sell crude to Dangote in naira was unclear and contradictory.

“What then did the order to sell crude to Dangote in the naira mean, if market forces and FX are to determine the price of Dangote’s product?” Nwafor asked.

The organization urged the government to create a competitive market by licensing local and artisanal refineries, citing the success of the Presidential Artisanal Gold Mining Development Initiative (PAGMDI). “Let the federal government allow local players to come to the mainstream local market as the pain cannot continue,” he said.

FENRAD also emphasized the need for Nigeria to move away from petrolism to clean, renewable, and smart agriculture.

In conclusion, FENRAD called on the government to expand the oil industry landscape by licensing qualified local refiners to help escape the looming energy crisis.

The organization also expressed concern over the financial handicap of the government, citing the NNPC’s debt of $6 billion to its suppliers and the revenue shortfall in the 2024 budget due to the decline in oil prices.

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