…marketers insist on full deregulation
The president of the Trade Union Congress (TUC), has said that Nigerians are not against the removal of subsidy on Premium Motor Spirit (PMS) but that government must get the trust of the citizens for it to carry out the exercise
The president, Festus Osifo who spoke during a panel session at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference on Thursday in Lagos, also noted that the majority of Nigerians are not really interested in the energy transition but were only concerned about affordable and reliable energy.
“Majority of Nigerians were not really interested in the energy transition but were only concerned about affordable and reliable energy.”
Osifo, who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the downstream sector had not achieved its potential due to the thorny issue of PMS subsidy.
Apart from communicating with the people to create an attitudinal change, the government must lead by example by cutting out wastage and making sacrifices that would help Nigeria overcome its economic challenges, said.
The Presidency should come out and say that they are reducing their budget. The National Assembly also needs to do so. That is leading by example.
Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting, he stated.
“The government must demonstrate that if subsidy must go, this must reflect in our education, it must reflect in our healthcare and also our level of infrastructure.
“So, the trust deficit that Nigerians have must be addressed before we can make any progress,” Osifo said.
Olumide Adeosun, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), in his remark called for phased removal of PMS subsidy to mitigate its impact on ordinary Nigerians.
Adeosun, who was represented by Clement Isong, Executive Secretary, MOMAN, said the N5 trillion subsidy payment by the government was unsustainable and putting a huge strain on the nation’s forex reserves.
He said the best option was to fully deregulate the sector and allow market forces to determine the price while also investing the subsidy gains in other critical areas such as mass transportation, healthcare and education.
Similarly, Dr. Gabriel Ogbechie, Group Managing Director, Rainoil Ltd., said the global average price currently for PMS was N516 per litre, which was way higher than the N175 per litre it was being sold in Nigeria.
Ogbechie said the government should not only deregulate but also initiate a petrol tax to fund the maintenance and construction of critical infrastructure across the country.
