The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to introduce urgent and socially sensitive measures to cushion the impact of rising petrol prices on households and businesses.
Dr Muda Yusuf, Chief Executive Officer of CPPE, made the call in a statement on fuel subsidy issued in Lagos on Sunday.
Yusuf said targeted interventions would be more effective and sustainable than restoring a universal petrol subsidy.
He said priority areas should include mass transit and logistics, affordable public transportation, rail freight and logistics infrastructure.
He also called for improved electricity supply and accelerated deployment of Compressed Natural Gas (CNG), solar and other distributed energy solutions.
On food security, Yusuf urged the government to strengthen agricultural production through improved irrigation, rural infrastructure, logistics and productivity.
He also advocated targeted social protection for vulnerable households and improved public services to reduce major household expenses.
According to him, productive enterprises, particularly micro, small and medium enterprises (MSMEs), should receive support through measures that reduce energy, logistics and financing costs.
He said the government should maintain a predictable, market-oriented policy framework that protects investor confidence and encourages further investment in refining.
Yusuf said the interventions should be a shared responsibility of the federal, state and local governments.
“The CPPE recognises that the current petrol-price escalation presents a serious cost-of-living, inflation and competitiveness challenge requiring urgent intervention.
“However, restoring the pre-reform universal subsidy regime is neither fiscally sustainable nor economically prudent.
“The appropriate policy direction is to preserve the downstream petroleum reforms while aggressively mitigating their social and economic costs,” he said.
Yusuf urged the government to prioritise affordable transportation, reliable electricity, food production, targeted social protection, healthcare, education and support for productive enterprises.
He also stressed the need for the fiscal gains from subsidy removal to become more visible through improved infrastructure, public services and productive investments.
The CPPE chief said there must be greater transparency and accountability in the use of additional resources accruing to the three tiers of government.
He said the subsidy debate should move beyond the question of whether petrol subsidy should be restored.
“The more consequential issue is how Nigeria can convert the gains of the reform into lower structural costs, stronger domestic production, improved competitiveness, greater energy security and measurable improvements in citizens’ welfare.
“That is the pathway to making the reform economically sustainable and socially defensible,” he said.
