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Business News of Thursday, 8 June 2023


Fuel Subsidy: President Tinubu tasks Vice President to fast-track interventions

President Bola Tinubu President Bola Tinubu

President Asiwaju Bola Tinubu has directed Vice-President Shettima-led National Economic Council (NEC) to quickly fashion out a modus operandi for distributing palliatives to ameliorate the effects of the fuel subsidy removal on Nigerians. The proposed palliatives may include an increase in salaries, cash transfers, etc.

The Governor of Ogun state Prince Dapo Abiodun conveyed the President’s intent while addressing Pressmen after the President meets with oil marketers at the Presidential Villa, Abuja on Wednesday.

In his remark to correspondents, Governor Abiodun said the oil marketers visited the President to show support for his bold decision to end the fuel subsidy regime.

He went further to say the President’s decision shows his determination and courage to hemorrhage that has bedevilled for years now. He noted the difficulties the policy has on the people but assured Nigerians that there is no gain without pain.

Major Oil Marketers’ Position

The spokesperson for major oil marketers, Dame Winifred Agbani also addressed the press after the meeting. She spoke of her joy at the President’s decision and the country had waited for too long for such a decision.

According to her, the country has spent N2 trillion on fuel subsidy for the first five months of the year and by the year’s end, the figure will rise to N6.7 trillion. She also stated her organization’s intentions to provide 50 to 100 mass-transit buses to the country.

IPMAN’s Position

In a related development, the Independent Marketers Association of Nigeria (IPMAN) has declared the organization can force down the price of Premium Motor Spirit (PMS) popularly called petrol nationwide.

The IPMAN President Chinedu Okoronkwo noted that the numerical strength of its members can help force down the price of the commodity when they allow independent importation.

Previous Administration’s Plan

In an earlier development, the federal government had on April 3rd announced it had secured an $800 million World Bank facility aimed to assuage the effects of the fuel subsidy removal. The then Finance Minister Mrs. Zainab Ahmed noted the facility was secured for the National Social Safety Net Programme.

According to the World Bank, the funds will be distributed to around 8.2 million vulnerable Nigerians in the wake of double-digit inflation and other macroeconomic malaise.