Nigerian “President” Bola Tinubu inaugural address in which he said no more subsidy leads to panic buying and hoarding
Nigerians on Tuesday, are queuing for Premium Motor Spirit (PMS) known as petrol, following the “president” ‘s inaugural announcement that fuel subsidy will be scrapped.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.” “President” Tinubu stated during his inaugural speech in Abuja yesterday.
He assured Nigerians that the trillion naira savings from subsidy removal will be re-invested into the economy and benefit all.
“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.” he added.
National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the announcement was sudden, adding that the development could lead to profiteering.
He said: “I also believe that the new government should have conducted an investigation to be able to know if Nigeria is actually subsidising products or not because this announcement is abrupt and triggers profiteering.
“If you are not sure of where you are buying your next petroleum product and the rate it will be supplied to you, you will be very economical to be able to dispense.”
He noted that although subsidy removal is imminent, the process to achieving this should also be considered.
“We know that subsidy is imminent but the process should also be considered, knowing clearly that Nigeria is dependent on petrol importation and domestic goods and services are triggered by petroleum products.
“So that announcement on the removal of fuel subsidy by Mr President is sudden. We at IPMAN believe that in line with our discussion with him, he would have looked at the system and be able to engage stakeholders and address the system once and for all.”
He added that, “We all agreed that before removal of subsidy, the about three or four refineries in the country should be efficient and working. Dangote refinery should have come upstream the modular refineries must also be encouraged to be able to cushion the heavy dependence of Nigeria on importing fuel from foreign countries.”
Some fuel stations in the oil producing south east region are dispensing at N600 a litre.
One of the motorists, wearing a long face, at one of the fuel stations selling petrol, lamented, “Why would Tinubu start on this note to punish the already depressed, impoverished Nigerians inflicted by the out-gone administration of President Muhammadu Buhari.
“This is absolutely unfair to Nigerians. When I heard that Tinubu has directed the removal of oil subsidy, I had to rush down here to fill my tank and some jerry cans for my power generating set.”
However, few other stations especially the major marketers, sold between N195 and N220 per litre across Lagos and Abuja.
Transport fares also doubled with many commuters stranded at various bus stops.
According to ngnrates.com the Naira took a blow, on the black market $1 is exchanging for N760 while the Central Bank of Nigeria official rate rose 0.03% at N461 to $1.
Akowe with reports from Lagos