The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Friday declared support for the planned removal of subsidy on petrol.
IPMAN President, Chinedu Okoronkwo, told the News Agency of Nigeria (NAN) that the Association’s decision to support the Federal Government plan to do so was hinged on the fact that the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16, 2021, did not make provision for subsidy.
Okoronkwo said that his association has consistently “advised the government to remove petrol subsidy because it is not in the interest of the development of the downstream sector.
“We welcome the decision of the government to stop subsidising petrol by 2022 and we are hoping it will attract more investments to the sector, especially with the passage of PIA.
“What we want is that a level playing field is provided for everyone in the sector to encourage competition once the subsidy is removed.”
Speaking in the same vein, the immediate past President, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said continued subsidising of petrol was not sustainable in light of current economic realities.
He said the 2022 deadline was realistic and its impact might be mitigated with the coming on stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and other modular refineries.
Oyebanji, who is the Managing Director of 11 Plc, however, faulted the plan to replace the subsidy with a cash transfer to Nigerians due to the lack of a reliable database in the country.
“In my personal opinion, I am of the view that such funds should be channelled to areas like education and mass transportation that would be accessible to ordinary Nigerians,” Mr Oyebanji said.
