Lagos, Aug. 1, 2023:The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it is ready to support the Federal Government in mitigating the impact of subsidy removal on Nigerians.
Alhaji Debo Ahmed, a former Vice Chairman, IPMAN Western zone, gave the assurance on Tuesday in Lagos.
Ahmed also expressed IPMAN’s willingness to collaborate with the government in developing alternative sources of energy to alleviate the effects of subsidy removal.
“We expect FG to call critical downstream stakeholders to fathom a design of alternative sources of energy and how this can go round the country within the shortest possible time.
“IPMAN is ready to synergies with the government in this respect because of our spread and ability to deliver whenever called upon by the government,” he said.
He highlighted the importance of exploring Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as competitive and viable options.
Ahmed emphasised that IPMAN’s extensive network of filling stations could facilitate the installation of CNG and LPG facilities across the country.
He called on the government to swiftly address this urgent matter by providing financial support and establishing CNG vehicle conversion centers.
“It is an urgent issue that bothers on economic expediency, the government should not delay.
“With this huge money realised government should be able to provide busses that use CNG and normal fossil oil but fare reduction to the barest minimum in order not to kill huge investments in the fossil oil business.
“The National Gas Expansion Programme Committee should be call back to continue their good work of bringing sellers and suppliers of CNG equipment together and also the quality assurance,” Ahmed said.
He suggested reviving the refineries under close government supervision and urged the National Gas Expansion Programme Committee to continue its commendable work.
Mr Joe Nwakwue, an oil and gas consultant and former Chairman, SPE Nigerian Council, said that the implementation of subsidy removal requires careful planning.
Nwakwue said this would ensure timely rollout of palliatives and judicious use of the saved funds, thereby benefiting all Nigerians.
He said that the subsidy savings remained the best solution, noting that its real implementation would reduce borrowing by the government.
“In essence, we were hitherto funding subsidies from borrowings, the elimination should reduce the fiscal pressure to borrow;” he said.
Mr Tunji Oyebanji, the Chief Executive Officer of 11 Plc said that it was obviously, that the savings was made possible, because the government through NNPCL was no longer bearing the cost.
According to him, the government should be wary of slipping back into the subsidy regime because prices are still rising.
“It should ensure judicious use of the saved funds and the timely rollout of palliatives,” Oyebanji said.
President Tinubu, on July 31, in a nationwide broadcast said that for over two months, government had saved over a trillion Naira.
Tinubu said that the money would be used more directly and more beneficially for all families.
According to him, for several years, he has consistently maintained the position that the fuel subsidy has to go.