If I Were In Tinubu’s Shoes, I Would Resign, Go Back To School And Learn Economics – Adewole Adebayo

Adewole Adebayo, the Social Democratic Party (SDP) presidential candidate for the 2027 election, has criticised President Bola Ahmed Tinubu’s approach to petrol pricing, arguing that the federal government should address the major costs involved in fuel production and supply rather than focus primarily on marketers’ profit margins.

Adebayo made the remarks during an interview with Channels Television, where he was asked about the government’s fuel price modulation policy and the possibility of petrol prices rising beyond ₦1,350 per litre. He was also asked what measures he would introduce differently if he were in charge of the country.

In response, the SDP chieftain questioned the economic reasoning behind the government’s approach, insisting that regulating the selling price of petrol without addressing the underlying costs would not adequately protect consumers from high prices.

He argued that any effective intervention in the fuel market must consider the expenses incurred throughout the supply chain, particularly the cost of crude oil, which he identified as a major component of petrol pricing.

According to Adebayo, concentrating on marketing margins while leaving other significant expenses largely untouched could mean that the government is targeting the wrong part of the pricing structure.

He explained that reducing or regulating marketers’ profit margins would have limited impact if the principal costs incurred by refiners and other participants in the supply chain remained high.

Speaking during the interview, Adebayo said: “If I were in their shoes, I hope not to be in their shoes. If I were in their shoes, I would resign and go back to school and learn economics properly so that I don’t cause harm to the government and to the people. Why I say so is this.”

He went on to explain his position, stating: “Look at a very simple matter. You cannot do price modulation without doing cost modulation. Because if you don’t do cost modulation, you are saying, in essence, that there is price gouging. That is to say, too much profit is being made by the marketers.”

The politician also questioned why the government was not placing greater emphasis on controlling the major expenses associated with refining and supplying petrol. He noted that the authorities had indicated that they were not directly controlling the gantry price or the cost of crude oil imported by refiners, while attention was being directed towards marketing margins.

Adebayo maintained that crude oil costs deserved greater consideration because they account for a substantial portion of the expenses involved in producing petrol. He argued that the government should explore ways to make domestically produced crude oil available to local refineries on more favourable terms.

He further suggested that the federal government should reconsider its approach to supplying crude oil to domestic refiners, including companies such as Dangote, BUA and Watersmith. According to him, refiners operate businesses with their own cost structures and profit objectives, making it necessary for the government to address the expenses that influence their final selling prices.

As part of his proposed solution, Adebayo recommended that the government allocate approximately 250,000 barrels of crude oil to refineries operating within Nigeria. He also advocated removing taxes on crude supplied to those refiners, arguing that the measures could reduce production costs and ultimately lower the price consumers pay at petrol stations.

Adebayo claimed that implementing these proposals could bring the price of petrol down to approximately ₦550 per litre. However, this figure represents his projected outcome, and achieving it would depend on several factors, including crude oil pricing arrangements, refining expenses, transportation costs, taxes, distribution charges and the applicable profit margins across the supply chain.

Adebayo’s position centres on the argument that lowering the costs faced by refiners could be more effective than concentrating primarily on the margins earned by marketers. His proposal would require further assessment to determine its financial implications, practical feasibility and potential effects on government revenue and the downstream petroleum market.

You Can Watch The Video (10:11 to 10:46 minutes).

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