Nigeria Nigerians Shocked by Pinnacle MD's Revelation Contradicting Government's Subsidy Removal Claim

The Managing Director and CEO of Pinnacle Oil and Gas Limited, Mr. Robert Dickerman, has disclosed that despite the supposed deregulation of the petroleum sector, Nigeria continues to pay a substantial monthly subsidy of about N1 trillion for petrol.

Speaking at the Nigeria International Energy Summit, Dickerman pointed out the existence of a significant subsidy, particularly in the foreign exchange portion of the petrol price, which keeps the product cheap and encourages smuggling to neighboring countries.

He highlighted Nigeria's historical tendency to allocate resources heavily to the oil and gas sector at the expense of other economic and social programs, resulting in underinvestment in local production and infrastructure.

Emphasizing the need for a national policy to attract foreign direct investment, Dickerman outlined key factors such as conservative fiscal policy, anti-corruption measures, and competitive markets.

The consequences of the petrol subsidy include Nigeria having the lowest gasoline cost in Africa, leading to smuggling and subsidizing neighboring countries.

Dickerman stressed the importance of long-term solutions to address the subsidy issue, acknowledging the economic challenges faced by citizens and companies.

The report raises concerns about the impact on the budget, hindrance to critical program funding, and the discouragement of foreign investment due to the lack of a competitive market.

Overall, the article highlights the intricacies of Nigeria's subsidy system and advocates for strategic, long-term solutions to ensure economic stability and growth.