IPMAN tackles Tinubu’s subsidy removal plan, NNPC reacts

,,,,,The Independent Petroleum Marketers Association of Nigeria (IPMAN) has opposed the declaration by President Bola Tinubu to enforce his predecessor’s decision to remove fuel subsidy by June ending.

Tinubu had earlier on Monday, in….Abuja, affirmed that his administration would not continue to pay subsidy on petroleum products.

,,,,,,He had said given the high opportunity cost the Federal Government was suffering to fund subsidies, it was no longer justifiable to continue.

“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.”

,,,,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 the new government should dialogue with marketers before taking the decision to remove subsidy, Daily Trust reports.

“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.

He said IPMAN was ready to work with the new government and would proffer measures to address…..the fuel subsidy regime, instead of effecting an outright halt in subsidy.

,,,,,, Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) has welcomed the pronouncement of President Bola Tinubu on the removal of fuel subsidy.

The President, in his inaugural address on Monday, had declared an end to the era of subsidy payment, saying the 2023 budget made no provision for fuel subsidy, so further payment was no longer justifiable.

,,,,,Responding in an emergency press conference at the NNPC Towers, Abuja, NNPCL told Nigerians that the move was in the best interest of the company.

According to the GCEO of the company, Mele Kyari, the company has been spending a substantial amount of its profits in the subsidy of the product.

,,,,,Kyari however said there was no need for panic buying as fuel queues had been noticed in some areas of the FCT.

He noted that the company had enough product to supply the country for the next 30 days, adding that it was monitoring its supply and distribution networks around the country.

,,,,,The Group Chief Executive Officer of NNPCL, Mele Kyari has welcomed President Bola Tinubu’s decision on the removal of fuel subsidy also assuring Nigerians of sufficient petroleum products amid the growing queues across the country.

Under the former President Muhammadu Buhari, the Federal Government announced in January that it would stop the payment of fuel subsidy by the end of June.

The then Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed that in the 2023 fiscal period, the government had made provisions of N3.36 trillion for fuel subsidy payment to cover the first six months of this year.

,,,,,This, she stated, was in line with the 18-month extension announced in early 2022.