Mixed reactions, as Nigerians, NNPCL, IPMAN differ over petrol subsidy removal, re-emergence of long queues

President Bola Tinubu had announced scrapping the controversial petroleum products subsidy during his inaugural speech at the Eagle Square after swearing-in, Monday morning, saying his government ‘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.’

However, hours after the announcement long queues reemerged at various petrol stations across the country as petroleum products marketers hiked the prices of the commodities to as much N350 depending on the dispensing points.

While some groups and individuals have kicked against the move, others, however, commended the new president for the action.

Reacting to the scrapping of petrol subsidy, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said it is opposed to the removal of subsidy on the grounds that the new president should have dialogued with the marketers before making the decision.

National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, in a statement, Tuesday, said the new government should dialogue with marketers before taking the decision to remove subsidy, as the group also insisted that local refineries should first be fixed before the removal of the subsidy to avoid ‘galloping inflation and inflicting more hardship on the masses.’

“We are not in support of the removal of fuel subsidy at this time. We have said it repeatedly that our refineries should be fixed before taking such decision that will cause galloping inflation and inflict more hardship on the masses.

“The government of President Tinubu should not adopt what is in the transition document handed over to it by the administration of former President Muhammadu Buhari. Someone (Buhari) who for eight years did not remove subsidy is advising a new government to remove it.

“That is not fair and should not be adopted. Rather the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” IPMAN said, adding that it is ready ‘to work with the new government and would proffer measures to address the fuel subsidy regime, instead of effecting an outright halt in subsidy.’

On its part, while also reacting to the subsidy removal, the Nigerian National Petroleum Company Limited (NNPCL) welcomed the pronouncement by Tinubu, saying the company has been spending a substantial amount of its profits in the subsidy of the product

Group Chief Executive Officer, Mele Kyari, at a press briefing, Tuesday, also assured that the NNPCL had enough product to supply the country for the next 30 days, adding that it was monitoring its supply and distribution networks around the country.

Under the former President Muhammadu Buhari, the Federal Government announced in January that it would stop the payment of fuel subsidy by the end of June.

Further, then Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said in the 2023 fiscal period, the government had made provisions of N3.36 trillion for fuel subsidy payment to cover the first six months of this year.

This, she stated, was in line with the 18-month extension announced in early 2022.

However, last month, Buhari failed to announce the removal as it instead deferred the scrapping of subsidy on imported petroleum products to the next administration.

Also reacting to the removal of the petrol subsidy and the attendant re-emergence of long queues at various petrol stations across the country, on Monday, and Tuesday, some Nigerians have maintained that this was a normal market reaction to a major decision as the one made by the president.

While the removal was hailed by former senator representing Kaduna Central, Shehu Sani and Mr Reno Omokri, the ex-media adviser to former president, Goodluck Jonathan, others, however, berated Tinubu for following up with the announcement with a strategy or contingent plan of action, as they claim, that an inaugural speech was not one for such an announcement knowing how sensitive the matter is.

Following are reactions from Nigerians as captures on Twitter by Oracle Today newspaper:

Reno Omokri (@renoomokri) wrote:

Subsidy removal of the right move. I support it. We would have done the same thing if Waziri Atiku Abubakar had been inaugurated today. It is a bold move, and I urge all opposition parties to be patriotic and support subsidy removal while we vigorously and zealously pursue our case to unseat President Bola Tinubu democratically.

Senator Shehu Sani (@ShehuSani) wrote:

Within seven months last year, the CBN ‘defended’ the Naira with $11.24 Billion.

Currently, Petrol subsidy consumes N400 billion monthly.

There is no better time to take tough economic decisions to revamp our economy than now.

The culture of allocating foreign exchange to elites with multiple bureau de change to sell at the black market must end.

The opacity of the subsidy regime chains of fraud must also end.

Omo Iya Yemi (@NyRA0001) wrote:

Do the math, you bought product for #50 to be sold for #70… then der is change in price from #50 to #150, where do you expect the retailer to get the next purchase funds, borrow? Nah!… gazz sell high. Me no dey blame filling stations ooo…

Ajogwu (@mragahiu) wrote:

You are blaming Nigerians, why not blame the man that made the speech? He didn’t know this will be the reaction,

Alexander Peter (@aligam24) wrote:

Baba blame the president elect. You don’t remove subsidy on ur Inauguration speech.  Role out a plan and then remove the subsidy. Nigerian suffering has just started

Gbolahan Obadimeji Philips (@GbolahanObadime) wrote:

It is normal.  That is called immediate market reaction, It does happen in capital market and forex trading, after a while, it will cool off and adjust.

ORI ADE (@macbite89) wrote:

If I should buy fuel at 150 and resell at 184.. all of a sudden fuel scarcity is been removed do u still expect me to sell at 184.. if am to restock who will balance my book won’t I be the one to run at loss….

Komzy (@komzyyyyyy) wrote:

Why won’t there be queue?

They must sell at an increased rate in order for them to be able to buy the new stock at the increased rate since subsidy has been removed.

Oseni Rufai (@ruffydfire) wrote:

Fuel queue! Why now! Na wa OO

Ladi Etti (@ladi_etti) wrote:

The intelligent thing would have been to put the palliatives in place BEFORE pulling the rug from under the country. Mumu in transition.

Akunnaya (@cynthia_nosike) wrote:

Considering how Nigerian markets are instead of announcing it like that, you would have first had a meeting with the stakeholders involved.

Asiwaju Bola Ahmed Media Centre (@ABATMediaCentre) wrote:

The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration. He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.

Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.

Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor. This includes but is not limited to investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.