The Independent Petroleum Marketers Association of Nigeria (IPMAN) has spoken against the plan of President Bola Tinubu to implement his predecessor’s decision to remove fuel subsidy at the end of June. According to Tinubu, the high opportunity cost borne by the federal government to fund subsidies isn’t justifiable anymore. He added that the subsidy had become problematic and increasingly preferred the rich at the expense of the poor. IPMAN opposes Tinubu’s decision and wants him to engage with marketers to find alternative solutions instead of halting subsidy payments abruptly. Since the removal of subsidy was announced, fuel queues have resurfaced in Abuja, Lagos, and other states. Experts suggest that stakeholders, including labour unions, are engaged in the process to ensure transparency and sustainability.
The Chief Ukadike Chinedu – National Public Relations Officer of IPMAN –requested that fuel subsidy not be removed without repair of the country’s refineries. He called on Tinubu to discuss with marketers and other stakeholders before making the final decision. IPMAN suggested alternative measures which could help address the fuel subsidy issue, rather than an outright stop. In response to the announcement, motorists have begun rushing to petrol stations to fill their tanks before the subsidy removal. Marketers had predicted prices could go up to N700/litre once subsidy ends in June. The Centre for the Promotion of Private Enterprise backs Tinubu’s decision to unify the exchange rate and remove fuel subsidy, citing that it would reduce uncertainty and inspire the confidence of investors. Meanwhile, the Nigeria Labour Congress and the Trade Union of Congress are calling on the new government to engage with organized labour before removing the subsidy.
