Fuel Price Hike: Expert Urges Transport Subsidy, Private Sector Partnership

By Adeogbo Goodness Oluwadara, Abuja

A business development consultant, Johnbosco Ezenwa, has called on the federal government to collaborate with the private sector to cushion the impact of rising fuel prices on Nigerians.

Ezenwa made the call during a business programme on Trust TV, stressing that transport costs had become unbearable for many workers.

He said, “The government needs to find a way to parley with the private sector and come up with models to coordinate that sector and subsidise it so that people can move around.”

According to him, introducing fuel vouchers for transport companies could help ease the burden.

“Transport is very high now. I see transport getting subsidised. When transport gets subsidised, then we can kind of manage food inflation,” he added.

The consultant noted that many Nigerians currently spend nearly 40 per cent of their salaries on commuting, describing the situation as “biting more or less.”

On concerns about alleged monopoly in fuel pricing, Ezenwa said global market forces largely determine pump prices.

He described operations at the Dangote refinery as patriotic, noting that marketers often take pricing signals from the facility before fixing their own rates.

“Many prices are set from what Dangote puts out there. That thing is supposed to be like that,” he said.

He, however, urged the government to play a stronger regulatory role to protect citizens from harsh economic realities.

“The essence of governance is to protect citizens and give succour. If global petroleum prices rise beyond what people can afford, there will be a crisis,” Ezenwa warned.

He emphasised that Nigeria’s economy is heavily transport-driven, relying on diesel and kerosene to move goods and services nationwide.

“With crude prices going through the roof, production costs will rise, and petroleum products will be expensive. Government has a huge role to play in cushioning this effect,” he added.