Newly sworn-in President Bola Tinubu, in the first policy directive of his administration yesterday, announced the removal of fuel subsidy.
Reacting to the announcement while speaking to LEADERSHIP, general secretary of Petroleum Dealers Association of Nigeria, PEDAN, Ibrahim Yahaya, said though the President’s subsidy removal announcement was still vague and not very clear, the truth is that pump price of petrol will go up.
Meanwhile the Centre for the Promotion of Private Enterprise has calculated that the federal government can generate a minimum of N10 trillion annually from the removal of fuel subsidy as well as elimination of the Central Bank of Nigeria -subsidised foreign exchange window. It further urged the incoming administration to: “Ensure a market reflective exchange rate to eliminate the distortions in the forex ecosystem; ensure level playing field in forex transactions; remove impediments to market mechanism in allocation of forex.
The minister contended that the sustenance of the fuel subsidy regime was no longer tenable as it had always provided the leeway for rich and unscrupulous Nigerians to steal and enrich themselves at the expense of the masses. “So, deregulation is actually a policy direction that is good for the common Nigerian. It is going to produce a lot of opportunities. Before now, you would have asked: Why has the refining sector not developed? It is because no refinery can operate commercially in Nigeria with subsidy.
“So, deregulation is going to really open up. You know what happened in the banking sector with deregulation. We had a few banks but today I cannot count the banks because that sector was deregulated. You see what deregulation did for the airline sector; we had only Nigeria Airways those days.
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