FG saves ₦400b in 4 weeks as subsidy removal yields positive results
In a significant development for Nigeria's downstream oil sector, operators have revealed that the Federal Government has successfully saved approximately ₦400 billion since the removal of subsidy on Premium Motor Spirit (PMS). The removal of the subsidy has been met with mixed reactions from industry stakeholders.
Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed concerns over the substantial loss of government revenue due to the subsidy. However, he acknowledged that the removal of subsidy has resulted in substantial savings for the federal government, amounting to billions of naira, a significant relief for taxpayers.
Emphasising the need for self-reliance in the petroleum industry, Okonkwo disclosed that petroleum marketers have initiated discussions to independently import petroleum products.
He stated, "We are currently engaged in meetings with various interested parties who are keen on commencing PMS imports. We remain determined and proactive in pursuing this goal."
While Okonkwo acknowledged that the price of petrol would be influenced by foreign exchange rates, he argued that the removal of subsidy would not solely lead to an incessant increase in the cost of PMS. He highlighted the crucial role of managing Nigeria's crude oil reserves, which serve as a foreign exchange earner.