Oyo State Governor Seyi Makinde has joined the ongoing fuel subsidy debate, urging the right pricing framework for an oil-producing country like Nigeria.

Makinde shared his opinion in his latest newsletter, arguing that Nigeria’s petroleum pricing debate must move beyond restoring or keeping fuel subsidies removed to focus instead on the right pricing framework for an oil-producing country.

He said he will always promote shifting to transparent pricing based on local production costs, domestic crude allocation in naira, and refinery reforms to reduce exposure to import costs and foreign exchange volatility.

The newsletter comes as opposition candidates debate subsidy restoration ahead of 2027 elections, following the 2023 removal that led to sharp increases in pump prices and cost-of-living pressures.

“In my newsletter, I shared my thoughts on the subsidy debate. The petroleum products pricing question should not simply be whether subsidy should return or remain removed. I believe that the more important question is: what is the right pricing framework for an oil-producing country like Nigeria?,” Makinde said.

“Over the years, we have changed governments, introduced new policies and promised ourselves new beginnings. Yet, for millions of Nigerians, the fundamental outcomes have remained largely the same.

“Too many of our people are still trapped in poverty. Too many families work hard without experiencing real progress. Too many young Nigerians are unable to see a clear path from education to opportunity.

“Insecurity continues to disrupt lives and livelihoods, while many of the institutions created to serve the people do not work as effectively as they should.”

According to Makinde, this tells us that Nigeria’s challenge is bigger than the individuals occupying public office at any particular time.

As such, he said the nation must address the systems, institutions and structures that continue to reproduce outcomes that do not serve the majority of its people.

Taking petroleum pricing as an example, Makinde explained that for years, the debate in Nigeria has largely been presented as a choice between subsidising petroleum products or allowing Nigerians to pay the full market price.

Sharing his opinion, the governor said: “I believe we are asking the wrong question. The more important question is: what is the right pricing framework for an oil-producing country like Nigeria?

“Different countries arrive at petroleum prices differently. What Nigerians deserve to know is the current pricing framework and the assumptions that determine what we pay at the pump: the crude price benchmark, refining costs and margins, exchange-rate assumptions, logistics and distribution costs, taxes and levies, and the other variables included in that calculation.”

These, according to Makinde, should be publicly accessible and sufficiently clear for Nigerians to interrogate the basis of the price they are paying and compare it with the alternatives.

He said Reset Nigeria is a national movement to rebuild Nigeria’s systems and institutions so that the country works for every Nigerian.

A national reset, Makinde argued, therefore requires both accountable leadership and active citizenship because it asks those who govern to serve differently, but it also asks every Nigerian to participate differently.

He, however, warned that this will not be an instant transformation, nor will it be the work of one person, it must be a deliberate national effort supported by a clear roadmap, measurable priorities and the sustained participation of Nigerians at home and abroad.

The Oyo State Governor said he will continue to share more about what it means to reset Nigeria’s economy, its security architecture, its education system, its institutions and its social and political order.

“I will also explain the lessons I have learnt from public service and how those lessons have shaped this vision. If Nigeria is to work for every Nigerian, what do you believe we must reset first?,” Makinde asked.