President Bola Tinubu’s plan to execute his predecessor’s decision to withdraw fuel subsidy by the end of June has been met with opposition from the Independent Petroleum Marketers Association of Nigeria.
AM Business on Monday reported that Tinubu said in Abuja that his government would end petroleum subsidy payments.
He argued that the Federal Government’s significant opportunity cost in funding subsidies made it no longer reasonable to do so.
“The fuel subsidy is gone!” Tinubu exclaimed during his inaugural address at Eagle Square, Abuja, shortly after he was sworn-in as the 16th President of Nigeria.
The President said “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.”
Tinubu stated that the subsidy would be eliminated as of June 2023 because it was not included in the budget.
However, reacting on Monday, IPMAN said it was opposed to the new president’s subsidy removal plan.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said, “We are not in support of the removal of fuel subsidy at this time. We have said it repeatedly that our refineries should be fixed before taking such decision that will cause galloping inflation and inflict more hardship on the masses.
“The government of President Tinubu should not adopt what is in the transition document handed over to it by the administration of former President Muhammadu Buhari. Someone (Buhari) who for eight years did not remove subsidy is advising a new government to remove it.
“That is not fair and should not be adopted. Rather the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” Ukadike stated.
Instead of imposing a complete halt to gasoline subsidies, he said IPMAN was ready to engage with the new government and would suggest methods to address the problem.
The Petroleum and Natural Gas Senior Staff Association of Nigeria declined to comment until it had studied the new administration’s policies, as was requested when the organisation was asked for its stance on the matter.
