May 28, 2022

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THE ISSUES OF PMS PRICE HIKE AND SCARCITY IN NIGERIA

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THE ISSUES OF PMS PRICE HIKE AND SCARCITY IN NIGERIA

From my late teens, the issue of PMS (Premium Motor Spirit), also known as feul in Nigeria,price increase and scarcity have been an issue to rekoned with in Nigeria. This issue has primary effects for Nigerians and the Nigeria economy. Major news news headlines as paint this issues in there books as it they are happening.

Feul issues has course thousands of dead in the country, lead to increase in staple food prices and stavation of the unrecognised poor citizens of Nigeria. When feul issues arises the Nigerian government to a large extent never considered this set of citizens. They believe that Nigerians will always cope and rightly so. Nigerians including me believe that no matter the situation God in heavens will surely provide for our needs. This has given us a positive outlook in what ever situations we found ourselves. This has made us not to go oit and fight because of issues of fuel price hike and scarcity. I comment Nigerians for this and encourage them to remain patient.

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Nigeria is refered to as a monoeconomy exporting majorly crude oil. Crude oil which is used to produced fuel has been a major source of revenue for the three tiers of government in Nigeria. It is true that Nigeria is a major our producing countries in the world producing 2.5 million barrels per day, making she number six in the world and number one in Africa (source NNPC). However, we continue importing feul to Nigeria in recent times.

I used to hear that the price of fuel Nigeria was as low as N11. But with time feul price has been inflated from N11 to presently N145 average price where in some states the prices is as high as N200 plus. This is a country exporting crude oil. There is therefore a need for the government to look critically on this issue. The issue of various hike of feul prices and scarcity has been as a result of subsidy removal as explainned by the Federal Government. If we continue to rely on imported fuel with a regular diminishing of the Naira against the US dollar the issue may change. It is now more paramount in my opinion for the Federal Government to consider refining crude oil in Nigeria, so as to cutail the future issues that may come up in Nigeria.

Infact, in the punch Newspaper today the Nigerian Labour Congress (NLC) has vowed to fight any further increase in the prices of fuel. With the current economic situation any firture negative change in the decision policies of the government may not be good for Nigerians.

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It will result in more failures of the small business on one side and companies on the other side. This may lead to downsizing of major blue ships companies and thereby not just affecting economic growth majored by GDP but also the populace. The Federal Government should endevour to consider regularly the prro unrecognised Nigerians in any microeconomic policies undertaken. They mean a lot. Without them Nigeria will not be complete. We not be term as a country that have the highest number of blacks.

In the issue of refining PMS locally, I recomend in my own opinion to include local refining. Let the government put into law environment policies that will allow local refiners to refine crude oil in Nigeria. We should not wait for the bulding and repairing of our gagantic refinerings in Warri, Portharcort and Kaduna. The Federal Government can set out procedure that willl make local production possible in an environmentally friendly way. This will not only reduce the problem of scarcity and feul price hike but will also provide jobs to our many citizens who find it hard to have two square meal a day.

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Further Reading:

Revamping the Nigeria railway-stimulus of economic growth.

Nigerian economic recession who are affected and who are not affected.

MSMEs and Nigeria economy.

How to keep financial transactions for SMEs.

Going corncern and business financial statement..

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