A costly failure which has hobbled Nigeria over the last three decades is repeating itself in a spectacular way.

Every day in Africa’s most populous nation, an incredible N1.8bn is lost to a profligate policy called petrol subsidy or so-called under recovery that is, the difference between real and fixed price of petrol.

This price difference is not provided in the budget of the federal government, but the cost is borne all the same. And not many in the country expect the government in power to summon the will to wean the people off this expensive indulgence.

As of March 1, 2021, the world’s average retail price of gasoline was $1.11 or N427.35 but pump price across Nigeria is artificially maintained at N165 a litre. The huge arbitrage opportunity is behind the never seen before volumes being smuggled across the border to neighbouring West African countries.