The Independent Petroleum Marketers Association of Nigeria (IPMAN) has backed President Muhammadu Buhari regime’s plan to remove fuel subsidy in 2022.

IPMAN’s president Chinedu Okoronkwo stated on Friday in Lagos that the Petroleum Industry Act (PIA) signed into law by Mr Buhari on August 16 had no provision for subsidy.

“We, as marketers, have always 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,” said Mr Okonkwo. “What we want is that a level playing field be provided for everyone in the sector to encourage competition once the subsidy is removed.”

The Minister of Finance, Budget and National Planning, Zainab Ahmed, had announced that the government would remove the fuel subsidy and support 40 million “deserving” Nigerians with a N5,000 monthly transport allowance.

Mr Okonkwo, however, advised the regime to reinvest the subsidy savings in critical areas such as healthcare, education, agriculture, and other sectors that would increase revenue accruing to the country.

Also, Tunji Oyebanji, ex-president of the Major Oil Marketers Association of Nigeria (MOMAN), stated that continued subsidising of petrol was not sustainable in light of current economic realities.

According to Mr Oyebanji, the 2022 subsidy removal deadline is realistic. He stated that the coming on stream of the 650,000bpd Dangote Refinery, Bua Group Refinery, Waltersmith Refinery, and other modular refineries might mitigate the policy’s effects.

Mr Oyebanji, 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.

(NAN)