Nigeria’s downstream sector operators’ have asked Nigeria’s next president to remove fuel subsidies and deregulate the downstream sector.
Thisday reported that representatives of the Major Oil Marketers Association of Nigeria (MOMAN), Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have said the next president needs to deregulate the downstream sector and remove fuel subsidies.
More details: The immediate past Chairman of MOMAN, Mr. Adetunji Oyebanji, supports the need for full deregulation of the downstream sector. He says that fuel subsidy is one of the things drawing the industry and economy back and removing it would allow investments to flow into the sector and improve the economy of Nigeria.
Meanwhile, the President of PETROAN, Dr. Billy Gillis-Harry believes Nigeria’s next president should work with industry operators to deregulate the downstream sector and save the country from a further crisis caused by petrol scarcity.
Also, the National Operations Controller of IPMAN, Mr. Mike Osatuyi, said there is a need to deregulate the downstream sector and remove the petrol subsidy. He also suggests setting up a committee involving industry players and critical stakeholders as well as civil society, to work out palliative measures to cushion the adverse effect of the policy on the poor masses.
Tinubu’s plan for the sector ties into these demands: Nairametrics had previously reported that Nigeria’s president-elect, Bola Ahmed Tinubu has plans to remove fuel subsidies. This pledge is contained in his “Renewed Hope” campaign manifesto, where he outlined his intention to remove fuel subsidies as soon as he gets into office as president. This is also in line with the Buhari administration’s pledge to remove fuel subsidies in June 2023.
According to Tinubu’s manifesto, the funds recovered after the subsidy is removed will be channeled into infrastructural, agricultural, and social welfare programs for Nigerians. The programs will help ease the burdens of Nigerians who are struggling with rising inflation. Road construction, public transport subsidies, and healthcare funds are some of the initiatives under the programs.
What you should know: Other people outside the sector also agree that the fuel subsidy regime is no longer sustainable as it affects Nigerians adversely. During a Tuesday interview via Arise Television, ADC gubernatorial candidate in Akwa Ibom state, Ezekiel Nya Etok said the fact that NNPC Limited is spending all their resources on fuel subsidy funding is something that needs to be addressed and Nigerians need people who can relate with their daily struggles to tackle such a challenge.
