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Business News of Tuesday, 30 May 2023


Nigerians berate Tinubu’s subsidy removal, says Dangote won’t subsidise petrol for Nigeria

The photo used to illustrate the story The photo used to illustrate the story

The petrol subsidy removal announced by President Bola Tinubu on the day of his inauguration has drawn backlash from Nigerians.

Nigerians have said the subsidy removal was thoughtless and adequate plans had yet to be put in place by the government to cushion the effect of the removal.

Seun Onigbinde, the co-founder of BudgIT, a Nigerian civic platform, said on Twitter that the government could not remove subsidies without offering to reduce the waste in government.

According to him, government officials cannot live large while the citizens suffer a higher cost of living.

Onigbinde said: "You can't remove subsidy without offering to reduce the waste in government. You can't live large while the citizens bear the higher cost of living. You are the leader. You show examples and earn trust.

Subsidy Removal must happen, but it requires tact. You have to figure out how to handle food inflation, provide alternative means of transport, and ramp up social investment under a well-structured social investment program. Anything else is a pathway to social disorder."

However, Nigerians have said petrol stations have adjusted their pump price to reflect the new reality, stating that petrol is now sold for between N500 and N600 in most petrol stations.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has opposed Tinubu's move to enforce his predecessor's plan to remove fuel subsidies by the end of June.

IPMAN, which reacted to the President's announcement, said it was not opposed to the new President's subsidy removal plan and supports the removal, but the new government should have discussed the plan with it before embarking on the removal.

Punch reports that IPMAN's Public Relations Officer, Ukadike Chinedu, added that the new government should dialogue with marketers before ending petrol subsidies.

Chinedu also said IPMAN is not in support of the removal at this time because the refineries have not been fixed, which was the condition given to the previous administrations before the subsidy could be removed.

He stated that the marketers are ready to work with the new government to proffer solutions to the subsidy regime.