Subsidy removal affects all, says lPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says marketers are also affected by the oil subsidy removal like any other Nigerian, contrary to the notion held by some people that IPMAN is making gains by the increase in price of petrol (PMS).
Alhaji Debo Ahmed, IPMAN National President, disclosed this while reacting on the impact of subsidy removal on Nigerians.
According to Ahmed, marketers are affected the more because cost of doing business has risen while profit margin remains low compared to how it was before the subsidy removal.
“A truck of petrol after subsidy removal is trice the price of one.
“The spiral effect is on general factors associated with condition of living.
“Our consolation is that, all things being equal, things will normalise and market forces will take precedence,” he said.
The independent marketer said that the interplay of marketing factors will determine the pricing of petrol.
Those factors, he said include crude oil price in the international market, competition and foreign exchange rate as Nigeria remains an import dependent nation.
He said more importantly is the coming up of Dangote refinery, the modular refineries of Waltersmith, Duport, Niger Delta Refinery & the NNPC Port Harcourt refinery.
“All these refineries when working optimally are game changers in the oil subsidy removal.
“It will mitigate our dependence on importation and boost our foreign reserve which means more jobs and infrastructural developments.
“The previous government should have prepared earlier for palliatives in the emerging subsidy removal.
” The palliatives and the subsidy removal should have been řintroduced simultaneously.
“The drastic effects should have been mitigated and would have cushion the drastic effects the subsidy removal is having on Nigerians,” Ahmed explained.
The IPMAN boss said that alliatives are not only on cash payments, for it to be more encompassing it should include, provision of transportation at reduced prices, salary increase,
loan to small holdings, farmers and artisans through the Nigeria Incentive Based Risk Sharing System For Agricultural Lending
(NIRSAL).
He said that the monthly FAAC payment has improved significantly from N800 billion to N2 trillion.
He added that the translate into more money accruing to the three tiers of government, FG,State and local.
Ahmed said that government should judiciously use the money to cushion, to develop and to provide social amenities that directly affect the living condition of Nigerians.
He said that the president Bola Ahmed Tinubu had already charged the people to ask their leaders for accountability.
“Government should revive the National Gas Expansion Program (NGEP) which was abandoned halfway.
“The NGEP was to sensitize Nigerians to use gas as an alternative to fossil oil, as gas is cheaper and performs cleaner and better than the fossil fuel.
“The programme was aborted, with gas, as an alternative to petrol could have help us in the development of our gas resources and also for the nation,” he added.
Ahmed said that Nigerians should exercise patience on President Tinubu’s administration as dividends of oil subsidy removal would endure with time and Nigerians will laugh last.
