Fuel price went up to N145 per litre on Wednesday – a decision which the government said will make petrol available, and free more cash for key projects which will add value to living. But opponents of the action insist that it will send prices rising and toughen life for the poor.
All Progressives Congress (APC) National Leader Asiwaju Bola Ahmed Tinubu yesterday described the removal of petrol subsidy as a tough but necessary decision which was taken “in the interest of the present and future generation of Nigerians”.
Tinubu urged Nigerians to accept the increased price of petrol, raised from N86 to a cap of N145 on Wednesday, as the best option available to make fuel available and to channel the cash hitherto used as subsidy “for the nobler purpose of putting those same funds to fairer, more equitable use in order that the government might better serve those of us who are truly in utmost need”.
Tinubu, in a statement from his Media Office, praised President Muhammadu Buhari for his “courage” to “put an abrupt and just end to this assault against our economy and political system”.
On the way forward, Tinubu said “as the subsidy is being phased out, we should simultaneously phase in social payment benefitting the poorest, most vulnerable among us”.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) also yesterday praised the Federal Government for finally taking the bold step to remove subsidy on Petrol.
In a statement signed by its President, Dr. Bassey Edem, NACCIMA described the subsidy removal as an attestation of the political will of the administration to stop the incessant fuel scarcity experienced in the country.
The organisation observed that the action will reduce the pressure on our foreign reserves as a result of huge demand for petrol import.
He, however, frowned at what he called the influence of the government in pricing, noting that it is not good for the economy.
Edem advised the government on the need to allow market forces to determine price instead of fixing a ceiling of N145 per litre. The NACCIMA boss canvassed the restructuring and merging of the Department of Petroleum Resources (DPR) and the Petroleum Product Pricing Regulatory Agency (PPPRA) into one regulatory body for better monitoring and efficient service.
He reiterated the need for the government to ensure quick budget implementation to alleviate the negative impact of this policy on the purchasing power of the average Nigerian.
“In view of the expected reduced pressure on our foreign reserve which this policy will bring about, it is also important that the resultant benefit on our foreign exchange allocation be directed more towards the real sector to hasten the development of our economy,” Edem said.
He called on Nigerians to support the policy, to block all the loopholes that have been hampering the rejuvenation of the economy.
The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industries (LCCI) supported the subsidy removal.
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