Oil, Gas Stakeholders Applaud Tinubu Over Removal Of Fuel Subsidy

Oil and gas industry participants have praised President Bola Tinubu's announcement about the elimination of fuel subsidies.

After Tinubu's inauguration as president of Nigeria, they made the remarks in separate interviews with the News Agency of Nigeria (NAN) on Monday in Lagos.

The elimination was a positive step, according to Mike Osatuyi, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), aimed at revitalising the downstream sector of the oil and gas industry.

According to Osatuyi, Tinubu made the vow to end fuel subsidies on the first day of his campaign.

According to NAN, the president pledged to abolish gasoline subsidies during his inaugural speech while adamantly demanding that no financial provision be made in the 2023 budget.

Tinubu pledged to concentrate subsidy funding on infrastructure, healthcare, and educational endeavours.

Osatuyi claims that the declaration is in line with his campaign pledges.

He said that Tinubu had pledged to end gasoline subsidies from the start of his administration during the campaign.

“The money used on subsidy will be diverted to develop other sector.

“That means Tinubu has begun to fulfill his campaign promises,” he said.

According to the head of IPMAN, the elimination would increase player competition and resolve the monopolistic issue.

According to Osatuyi, the elimination of subsidies will result in a liberalised market, increased product availability, and a limit on middlemen's excesses.

However, he emphasised that there would be competition and that the price of petroleum would rise.

Osatuyi stated that the money saved from the elimination of subsidies will be utilised to strengthen the economy and improve the lives of Nigerians.

“I commend his effort and laud the courage for taking the bull by the horn.

Furthermore, according to Tunji Oyebanji, Managing Director of 11 Plc, the announcement was a wise one for the nation.

However, Oyebanji stated that it was unclear whether the withdrawal of the gasoline subsidy was effective right away.

“Scarce resources will be channelled to productive sectors of the economy.

“Borrowing levels will reduce significantly. It may possibly lead to the strengthen of the Naira,” he said.

The nation must proceed towards complete deregulation, according to Obafemi Olawore, the former Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), who advocated the elimination of subsidies.

“However, as a new admintration, it must be done in phases; over six to 12 months to give room for consultation and engagement so as to make it bearable and less painful.

President Tinubu was correct, according to Joe Nwakwue, an oil and gas expert and a former chairman of the SPE Nigerian Council, when he claimed that petroleum subsidies are no longer viable.

According to Nwakwue, it would be irresponsible for any administration to merely take it off without a strategy given the discomfort and societal repercussions of removal.

“A multi-month plan that addresses key fuel market issues/challenges and measures to alleviate the pain needs to be crafted, adopted and rolled out.

“A knee jerk removal would be painful to the consuming public and potentially catastrophic to the economy,” he said.