Rewane Advocates Refinery-Based Fuel Subsidy Model to Benefit Nigerians
Renowned economist and Managing Director of Financial Derivatives Company, Bismarck Rewane, has proposed a shift in Nigeria’s fuel subsidy framework, recommending a refinery-based model designed to deliver direct benefits to consumers.
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Speaking during a session on Nairametrics TV, Rewane said Nigeria’s abundant natural resources and strategic positioning provide a solid foundation for a more efficient and sustainable subsidy system anchored on domestic refining.
He argued that instead of maintaining a broad and costly subsidy regime, the country should adopt a targeted approach that leverages local refineries to stabilise fuel prices and reduce systemic inefficiencies.
According to him, the proposed model would see the government supply crude oil to domestic refiners at a controlled rate, while ensuring that refined petroleum products are sold to consumers at more affordable prices.
Rewane noted that such a system would not only improve price stability but also strengthen local refining capacity, reduce dependence on fuel imports, and enhance transparency within the sector.
He added that aligning subsidy benefits with domestic production could help optimise government spending while ensuring that ordinary Nigerians feel the direct impact of policy interventions.
The proposal comes amid ongoing discussions on energy sector reforms and efforts to balance fiscal sustainability with consumer protection in Nigeria’s downstream petroleum industry.
Rewane Advocates Refinery-Based Fuel Subsidy Model to Benefit Nigerians