Investors React Positively as Tinubu Meets Emefiele, Kyari, Labour over Petrol Subsidy

• Stock market gains N1.51tn, naira appreciates as Eurobonds rally
• NLC, TUC express outrage, describe pronouncement as insensitive
• Shettima: We must end fuel subsidy now else it will end Nigeria
• NNPC, NMDPRA, others back move
• Kyari: FG owes national oil company N2.8tn subsidy fund
• Says govt couldn’t pay subsidy bills since February 2022
• Declares licences to be issued soon to marketers to import fuel
• NEITI laments N13.6tn subsidy, seeks people-oriented programmes
• Lawmakers, MOMAN, DAPPMAN, IPMAN hail president
• Labour party faults approach

By Thisdaylive.com

Investors in both the equities and money market yesterday responded positively to the pronouncements by President Bola Tinubu in his inaugural speech.

Specifically, the stock market appreciated as investors gained N1.51 trillion, apparently in response to Bola Tinubu’s signalling of plans to unify foreign exchange rates. Also, the naira appreciated on the parallel market as it gained N5 to close at N765/$1 yesterday, up from the N770/ $1 it traded the previous day.

However, Tinubu; the Governor of the Central Bank of Nigeria (CBN) and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, yesterday met to strategise on how to engage members of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), to resolve the looming agitation against the phasing out of the petrol subsidy regime, which was among the pronouncements by the president on Monday, reliable Villa sources told THISDAY.

However, it is not certain how the talks with the two labour unions went or when further talks and expected to hold.

Also yesterday a Tinubu Support group attempted to clarify the President’s stance on the controversial policy, saying subsidy was already removed by the previous administration as the 2023 budget for fuel subsidy was planned and approved to last only for the first half of the year.

The group explained: “The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration.

“He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.

“Effectively, this means that by the end of June, the federal government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.”

Members of the organised Labour under the aegis of the Nigeria NLC and TUC, had yesterday, described the pronouncement by President Bola Tinubu, that petrol subsidy was over as outrageous and insensitive to the economic plight Nigerian masses were being subjected to.

But in swift reaction, the Vice President, Kashim Shettima, yesterday justified the urgent need to end fuel subsidy regime in the country, saying the policy must be phased out for the survival of the country.

Also, in their separate reactions in Abuja, the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Upstream and Midstream Regulatory Authority (NMDPRA), called for calm, insisting that while there was ‘potential’ change in price, the country had enough stock in its storage facilities.

Emphasising reasons to support the move to eliminate petrol subsidy, the Group Chief Executive Officer (GCEO), NNPCL, Mele Kyari, disclosed that the federal government was indebted to the national oil company to the tune of N2.8 trillion in fuel subsidy payments.

However, the chaotic reaction to the removal of petrol subsidy announced by Tinubu on Monday, continued yesterday, with many filling stations across the country hoarding the product, while the few that opened to customers sold at exorbitant prices.

Thisday observed that many filling stations in Abuja and all other states across the country, had vehicles extending several kilometres as retailers continued hoarding the product.

Following the hike in pump price, commercial transporters also hiked their trip fares across the country in response to the developments. The price of the product, it was gathered, now ranges from between N220 to N500.

Commuters were also stranded at various bus stops, as they waited to board commercial vehicles which had hiked fares from between 50 and 100 per cent.

Investors React Positively to Tinubu’s Economic Policy Direction

Investors in both the equities and money market yesterday responded positively to the pronouncements by President Bola Tinubu in his inaugural speech.

Specifically, the stock market appreciated as investors gained N1.51 trillion, apparently in response to Bola Tinubu’s signalling of plans to unify foreign exchange rates.

Also, the naira appreciated on the parallel market as it gained N5 to close at N765/$1 yesterday, up from the N770/ $1 it traded the previous day.

This was just as sovereign dollar-denominated bonds rallied.

The market capitalisation opened for trading at N28.845 trillion yesterday, gaining N1.51trillion or 5.23per cent to close at N30.350 trillion, while the NGX All-Share Index gained 5.23 per cent or 2,764.47 basis points to 55,738.35 basis points from 52,973.88 basis points it opened for trading.

The 5.23 per cent recorded yesterday was the biggest single-day gain since November 12, 2020.

Tinubu in his inaugural address had commended the decision of the outgoing administration of President Muhmmadu Buhari in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.

Tinubu had said: “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions.”

He added that, “The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.”

According to industry experts and multilateral lenders like the International Monetary Fund (IMF), the harmonisation of the rates and removal of subsidy would improve the attraction of  foreign capital and also help the government channel useful funds into more productive ventures like infrastructural investment, education and healthcare.

In yesterday stock market trading, the market breadth index was significantly positive with 64 gainers against 12 losers. Eight stocks including Transcorp Hotels Plc, Jaiz Bank Plc, Nigerian Breweries, Eterna, Zenith bank, FCMB Group, Sterling Bank and Deapcap gained 10per cent to top gainers yesterday.

Access Corporation added 8.33per cent to close at N12.35 per share, becoming the most actively traded stock with about 200 million units of shares worth about N2.4 billion.

Sector Performances revealed that the  NGX Banking Index expanded by 8.20 per cent, driven by the gains printed in Sterling Bank, Zenith Bank, and Jaiz bank which gained 10 per cent ,respectively.

The NGX Industrial Index advanced by 7.41per cent, on the back of the positive sentiment seen in Dangote Cement which rose by 7.41per cent, Lafarge Africa appreciated by 6.52 per cent and Berger gained 5.75per cent.

NGX Consumer Goods Index rose by 6.41per cent, caused by the increase in prices of Nigerian Breweries (+10 per cent), Dangote Sugar (+9.50per cent) and Nascon (+9.42 per cent).

In addition, NGX Oil and Gas Index increased by 4.04per cent, due to the bullish trend observed in ETERNA (10 per cent), CONOIL (+9.91 per cent) and Total (+9.24 per cent).

According to analysts at InvestmentOne Research, “The local bourse closed positive today due to the buy-interests recorded across major sectors.

“Going forward, we expect investors’ sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

Prof. Uche Uwaleke of Nasarawa State University, in chat with THISDAY backed the move by this present administration to remove petrol subsidy.

Uwaleke said fuel subsidy have proven to be unstainable. He also supported the unification of exchange rates in the country. According to him, “I equally support unification of exchange rates because doing so will discourage round-tripping, and bring more transparency to the forex market which supports foreign investments.

“However, in order to minimise the negative impact on the livelihoods, issues of fuel subsidy and exchange rates unification which he mentioned in the speech should be handled with care.”

He, thus, calls for stakeholders’ engagement in the new administration.

“To this end, I suggest an immediate constitution of an ‘economic policies’ coordinating committee’ made up of economic and finance experts,” he added.

NLC, TUC Kick against Petrol Subsidy Removal

Members of the organised Labour under the aegis of the Nigeria NLC and TUC, had yesterday, described the pronouncement by President Bola Tinubu, that petrol subsidy was over as outrageous and insensitive to the economic plight Nigerian masses were being subjected to.

However, the labour movement advised the government to adopt an alternative strategy that would not adversely hurt the Nigerian while seeking resolve the issue of subsidy.

In a statement issued in response to Monday’s announcement on withdrawal of fuel subsidy by the president during his inaugural speech, NLC, Joe Ajaero, advised Tinubu to reconsider the move instead of daring the people, adding that it could be a costly gamble.

The statement signed by Ajaero, stated that the subsidy removal was ill-timed and violated the condition precedent necessary before such a decision was made.

It said: “We at the NLC are outraged by the pronouncement of President Bola Tinubu removing ‘fuel subsidy’ without due consultations with critical stake holders or without putting in place palliative measures to cushion the harsh effects of the ‘subsidy removal’.

“Within hours of his pronouncement, the nation went into a tailspin due to a combination of service  shut downs  and product price hike, in some places representing over 300 per cent price adjustment.

“By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope. He equally devalued the quality of their lives by over 300 per cent and counting.”

Describing the subsidy removal as ill-timed, the NLC said the  federal government needed to clean up the NNPC.

It said that after doing so, government should then, “proceed to lay the foundation for a mass transit system in the railways and road network with long term bonds and fully develop the energy sector towards revitalising Nigeria’s economy and easing the burden any subsidy removal may have on the people.

“But we know this is more than the fuel subsidy. It is about government’s ideas on the role of money in bettering the lives of people, about the relationship between government and the people and about the primary objective of government’s interaction in the economy.

“It is about whom, among the Nigeria’s various social classes, does government most value.

This is why public reaction has been heated. It is not so much that people have to spend more money. It is because people feel short-changed and sold out”.

The NLC stated that what the government claimed to be economic decisions were essentially political ones.

“There is progressive politics, there is progressive economics. As there is elitist politics, there is elitist economics. It all depends on what and who in society government would rather favor. The Jonathan tax represents a new standard in elitism.

“This whole issue boils down to whether government believes the general public is worth a certain level of expenditure.

“However, because the distance between government and the people is far and genuine level of affection is low, government sees no utility in continuing to spend the current level of money on the people. In their mind, the people are not worth the money.

“Government sees more value in “saving” money than in saving the hard-pressed masses.

“If government thrashed the fuel subsidy based on considerations that it will run out of naira then it based its decision on a factor that have not been relevant since the time of the Biafran war,” it said.

“If he is expecting a medal for taking this decision, he would certainly be disappointed to receive curses for the people of Nigeria consider this decision not only a slight, but a big betrayal.

“On our part, we are staunchly opposed to this decision and are demanding and immediate withdrawal of this policy.

The implications of this decision are grave for our security and well-being.

“We wonder if President Tinubu gave a thought to why his predecessors in office refused to implement this highly injurious policy decision?

“We also wonder if he also forgot the words he penned down on January 8, 2012, but issued on January 11, 2012.”

While reminding Tinubu of the statement he penned against a similar move by the then Jonathan administration to remove fuel subsidy, the NLC urged him to respect his own postulations and economic theories instead of daring the people which could be a costly gamble.

For their part, the TUC also rejected Tinubu’s declaration that federal government has removed subsidy on petroleum products.

In its reaction to the president’s inaugural speech, the TUC stated: “If by this, he meant increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far”

In a statement jointly signed by the TUC president, Festus Osifoh and General Secretary, Nuhu Toro, the union said it was taken aback and even horrified, when Tinubu announced the withdrawal of subsidy on petroleum products.

Osifoh said: “While listening to Tinubu’s inaugural address, we were at first encouraged, by his pledge to lead as a servant of the people (and not as a ruler) and to always consult and dialogue, especially on key and knotty national issues.

“But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products, if by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far.

“It is not for nothing the Buhari government pushed this to the new administration, but we expect the Tinubu government to be wise on such a sensitive issue and be more explicit in its pronouncement to avoid contradictory interpretation when comparing his written statement, what he said and the provision in 2023 appropriation act.

“We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people, hence ought to have been treated with utmost caution, and should have been preceded by robust dialogue and consultation with, the representatives of the working people, including professionals, market people, students and the poor masses”.

The TUC said it expects to wait and allow the matter to resolved through dialogue and consultation.

In addition, it said the Nigerian workers and indeed mases must not be made to suffer the inefficiency of successive governments.

“Accordingly, we hereby demand that President Tinubu should tarry awhile to give room for robust dialogue and consultation and stakeholders engagement, just as he opined in his speech until all issues and questions – and there are a host of them! – to ensure that they are amicably considered and resolved. “Nigerian Workers and indeed mases must not be made to suffer the inefficiency of successive governments.”

The statement said the labour movement was open and ready to dialogue with the Tinubu administration on the fuel subsidy issue, adding that it was in the interest of the people that such a matter is resolved peacefully

“This new administration cannot be seen to be speaking from both sides of its mouth, we urge President Tinubu to be a president with human face.

“Like always, we will stand by the people and their interests. Nigerian workers are hardworking and have remained consistent with productive work regardless of harsh government policies, poor governance and mismanagement of resources that have placed us under difficult living conditions,” it added.

Shettima: We Must End Fuel Subsidy Now Else It Will End Nigeria

However, Shettima yesterday justified the urgent need to end fuel subsidy regime in the country.

According to him, the new government had anticipated that there would be serious opposition to its decision to remove fuel subsidy, but noted the pressing need to be resolute in achieving the objective.

Shettima, who made this known while speaking with newsmen on his first day in office at the State House, Abuja, stressed that Nigeria needs to get rid of fuel subsidy, otherwise the subsidy would get rid of the Nigerian nation.

He said the subsidy regime has not benefited the ordinary Nigerian, but was being used to subsidise the lifestyle of the affluent.

He assured that despite the expected opposition from beneficiaries of the subsidy regime, Tinubu, whom he described as a man of strong will and conviction, would frontally address the menace.

The vice president added: “The president has already made pronouncements yesterday (Monday) on the issue of the fuel subsidy. The truth of the matter is that it is either we get rid of subsidy or the fuel subsidy gets rid of the Nigerian nation.

“In 2022, we spent $10 billion subsidising the ostentatious lifestyle of the upper class of the society because you and I benefit 90 per cent from oil subsidy. The poor 40 per cent of Nigerians benefit very little and we know the consequences of unveiling a masquerade.

“We will get fierce opposition from those benefitting from the oil subsidy scam, but where there is a will, there is a way. Be rest assured that our President is a man of strong will and conviction.

“In the fullness of time you will appreciate his noble intentions for the nation. The issue of fuel subsidy will be frontally addressed. The earlier we do so, the better”, he said.

Commenting on the issue of multiple foreign currency exchange rates, the vice president assured that “we are going to collapse it into one.

He further stated that before long, Tinubu would unfold the agenda of the new administration that would benefit all Nigerians.

“So these are two big elephants in the room and as the days go by, we will be unveiling our agenda. He is going to unveil his agenda because as I have always said, there can never be two captains in a ship.

“He is the President and Commander-in-Chief of the Armed Forces. I’m the vice president. Your relevance is directly proportional to the level of your loyalty to the president. This is a gentleman that I have known for well over a decade; that I have interacted closely with.

“Be rest assured that we are going to work harmoniously as a team, as a family for the greater good of our nation”, he said.

Shettima said the president was poised to redefine the meaning of modern governance, saying he would provide the needed leadership, but also requested Nigerians to give him and his administration the needed support.

He said: “I believe this generation has a rendezvous with destiny and my principal, Bola Ahmed Tinubu, the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, is poised to redefine the meaning and concept of modern governance.”

NNPC, NMDPRA, Others Back FG on Fuel Subsidy Removal

In their separate reactions in Abuja, yesterday, the NNPC and the NMDPRA called for calm, insisting that while there’s ‘potential’ change in price, the country had enough stock in its storage facilities.

While maintaining that Nigerians should not engage in panic buying of the product, Kyari welcomed the declaration by the new president.

According to Kyari, while the apprehension by petrol consumers was understandable, the potential changes to petrol prices were not enough reason for Nigerians to buy more than they require at a time.

Kyari stated that the NNPC would ensure continuous and sufficient supply of petroleum products, particularly Premium Motor Spirit (PMS), noting that the company was monitoring all its distribution networks to ensure compliance.

“We would like to assure Nigerians that we have sufficient supply of petroleum products, particularly PMS in our country and there is no reason to panic. We understand that people will be scared of potential changes to the price of petrol.

“But that is not enough for people to rush to fuel stations to buy more than what they need. We are watching all the distribution networks, and support facilities and we believe that normalcy will be restored very soon,” he noted.

The NNPC chief executive reiterated that the company had been using some of its cash flow to make subsidy payments which had constituted a huge burden on the company’s finances.

“We welcome the decision of Mr. President to announce that the subsidy on PMS is over and this has really been a major challenge for the NNPC’s continued operation. We have been funding the subsidy from the cash flow of the NNPC.

“We believe that this decision will free resources for the NNPC to continue to do the great works that this company will do for our country. It allows us to continue to function as a very commercial entity. We welcome this development,” he added.

Similarly, the NMDPRA, through its General Manager, Corporate Communications, Kimchi Apollo, said Tinubu’s decision to end fuel subsidy was in line with the Petroleum Industry Act (PIA) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.

“We are working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form.

“The Authority assures that there is ample supply of PMS to meet demand as we have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country.

“We therefore call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard.

“The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation.

“We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector,” it said in the statement.

NEITI Laments N13.6tn Subsidy, Seeks People-oriented Programmes

The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday welcomed the removal of fuel subsidy by Tinubu, lamenting that N13.6 trillion had been expended for the purpose between 2005 and 2021.

A statement in Abuja signed by the Deputy Director/Head Communications & Stakeholders Management, Obiageli Onuorah, described the move as a positive statement by the new administration to decisively implement the findings and recommendations contained in NEITI reports.

NEITI recalled that its recommendations for the removal of fuel subsidies had remained a persistent request since 2006, given the agency’s concerns about the huge financial burden that the subsidy regime imposed on the growth of the Nigerian economy over the years.

“From the NEITI reports, between 2005 to 2021, the country spent $74.3862 billion which translates to N13.697 trillion,” the statement added.

It explained that a breakdown of the figures showed that in 2005, the government paid $2.6 billion (N351 billion) as subsidy. In 2006 & 2007, it paid $1.99 billion & $2.176 billion (N257 billion & N272 billion) respectively.

“Subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52 billion (N2.11 trillion). A sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.336 billion (N654 billion) in 2012. The decline in subsidy expenditure continued in 2016 and 2017 to as low as $473 million (N154 billion) in 2017.

“The reduction was short-lived as the payments skyrocketed to over $3.88 billion (N1.190 trillion) in 2018 and 2021 to $3.575 billion (N1.43 trillion). By these figures, Nigeria expended an average of N805.7 billion annually, N67.1 billion monthly or N2.2Billion daily,” NEITI stated.

The amount expended on subsidies from 2005 to 2021, it said , is equivalent to the entire budget for health, education, agriculture and defence in the last five years.

The sum, NEITI stressed, also equals the capital expenditure for 10 years between 2011-2020, with subsidy payment reaching its peak in 2011 ($13.52 billion or N2.11 trillion).

NEITI pointed out that the situation was even worse because it relied more on federation accounts funds, the federal government and sometimes from external borrowing with negative consequences on government overall revenue profiles.

To drive home the urgency to remove subsidy, NEITI said it re-submitted an earlier report in the year 2023, NEITI, recommending the strengthening of the implementation of the Petroleum Industry Act (PIA) as a whole and not in parts.

NEITI also underlined the importance of unveiling the implementation of people-oriented welfare programmes to provide relief for the poor and vulnerable.

It advised on priority attention to be paid to the rehabilitation of the nation’s four refineries currently ongoing while encouraging private investments in establishing new refineries.

“Other policy considerations are that government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the oil and gas sector and conduct appropriate stakeholders’ consultations, engagements and enlightenment.

“While the details of the implementation of the policy are being awaited, NEITI is set to commission a special research on the actual consumption of PMS in Nigeria.

“The study is to establish precisely what the nation is consuming. NEITI’s view remains that the data on the country’s actual consumption is unknown resulting in huge revenue losses to the nation through subsidy payments based on estimates,” it posited.

NEITI further expressed excitement in Tinubu’s position that the revenues saved from subsidy should be channelled to education, health, roads and other critical infrastructure,

“The policy advisory also conducted a survey of the pump price of petrol across the country outside the major cities of Lagos & Abuja during the era of petroleum subsidy.

“In the North West, North East and North Central states a litre of petrol averages N270.00, N265.80 and N 269.00 respectively. The southern states pay slightly lower with the South-South paying N232.50, South East N235.20k while the South West states pay an average of N250.00. Major marketers and prices at the state capitals stood largely between N169.90 to N190.00.

“NEITI’s study on the petroleum subsidy also established the prices of Petroleum products across Nigeria’s borders and within the West and East African region.

“In Senegal, a litre of fuel sells for 635.91k, while in Guinea, Sierra-Leone, Togo, Cameroun and the Republic of Benin it costs N609.30k, N506.96K, N 497.78K, N449.24 and N462.23k respectively. It is on record that the supply to some of these Nigerian neighbours is largely the smuggled subsidized petroleum products from Nigeria,” it added.

NEITI, therefore, called on the regulatory institutions to stand firm and tackle artificial scarcity, hoarding and other man-made obstacles being created at the moment to frustrate the implementation of subsidy removal.

MOMAN, DAPPMAN, IPMAN Hail President

Meanwhile, the Major Oil Marketers Association of Nigeria (MOMAN) as well as the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN), yesterday endorsed the pronouncement by Tinubu, on the phase-out of the petrol subsidy regime.

“We appreciate the clarity of policy from the Tinubu administration, a direction that signals a courageous and pragmatic shift in our nation’s economic trajectory.

“In light of the assurances given by the NNPCL and the NMDPRA, we wish to reiterate that there is no cause for alarm. We strongly urge Nigerians to avoid panic buying or stockpiling of petrol. This behaviour not only creates artificial scarcity but also poses a significant safety hazard.

“The NNPC has assured Nigerians of adequate fuel supply and the NMDPRA is working closely with stakeholders to ensure a seamless transition. They are ensuring distribution channels remain uninterrupted, thereby making fuel readily available at all filling stations across the country,” the organisations stressed.

The decision to phase out the fuel subsidy regime, they argued was not merely a fiscal reform, but a significant stride toward social justice.

“We are heartened that the administration plans to redirect these substantial funds towards essential public goods such as infrastructure, education, and healthcare. These investments symbolize our shared future, promising considerable, long-term benefits for all Nigerians.

“We understand the concerns regarding potential price increases. However, we expect marketers to maintain reasonable pricing, as NNPC remains the sole supplier of the product currently.

“We anticipate minimal changes regarding distribution costs, considering the cost of the product constitutes 80 per cent of the pump price. We pledge, in collaboration with the Nigerian Association of Road Transport Owners (NARTO) and other crucial stakeholders, to manage these distribution costs diligently to minimise their impact on the pump price,”  the groups said.

They also urged suppliers to continue supplying products to all legitimate marketers and called on all stations to remain open and avoid hoarding products.

“We eagerly await the day when the Dangote Petroleum Refinery, as well as other licensed importers, join the current supplier in a bid to diversify the source of petroleum products and enhance market competition.

“MOMAN and DAPPMAN will maintain open dialogue with the federal government, advocating for stability in the oil sector during this transitional period. We are prepared to support any measures from the government that would help cushion the impact on the populace,” they added.

On his part, the National Operations Controller of IPMAN, Mr Mike Osatuyi, said the removal of fuel subsidy by Tinubu was a welcome development geared toward revamping the downstream sector of the Nigerian oil and gas industry.

Osatuyi said Tinubu had promised to remove fuel subsidy right from the first day of his administration, noting that the pronouncement was part of his campaign promises. He said the money used on subsidy would be diverted to develop other sectors, saying, “That means Tinubu has begun to fulfil his campaign promises.”

The IPMAN official said the petrol subsidy removal would bring about competition among players and address the issue of monopoly in the petroleum marketing business in Nigeria. Osatuyi maintained that the subsidy removal policy would lead to market liberalisation, availability of product, and check excesses of middlemen, warning, however, that there would be an increase in the price of petrol. Osatuyi noted that the money saved from subsidy removal would be used to boost the economy and the well-being of Nigerians.

Lending his voice, the Managing Director of 11 Plc and immediate-past Chairman of MOMAN, Mr. Tunji Oyebanji, said that the pronouncement was a timely decision for the country. Oyebanji, however, said it was not clear if the removal of fuel subsidy was with immediate effect. “Scarce resources will be channelled to productive sectors of the economy. Borrowing levels will reduce significantly. It may possibly lead to the strengthening of the naira,” he said.

Lawmakers Back Removal of Fuel Subsidy, Hail Tinubu’s Boldness

Members of the House of Representatives, at plenary yesterday, backed the decision of the federal government to end petrol subsidy.

The lawmakers hailed what they described as courage and boldness to serve the country Nigeria with honesty and integrity.

According to them, this showed his readiness for national task ahead and service to humanity.

The House appealed to Nigerians to remain patient, resilient and prayerful so that the President can deliver on his promises.

The resolutions followed the adoption of a motion of urgent national importance sponsored by Hon. Jimoh Olajide (APC, Lagos).

Moving the motion, Olajide noted that  Tinubu on May 29th 2023 made a Public Pronouncement on fuel subsidy removal.

He said Tinubu was a concerned senior citizen who’s agenda was to favour the down trodden for the purpose of humanity.

He explained that there was no provision for fuel subsidy in the 2023 Appropriation Act, and that the current 9th Assembly and the past administration had given it a legal backing.

Labour Party Faults Approach

The Labour Party yesterday, expressed shock over what its described as untimely removal of fuel subsidy by Tinubu.

The party lamented that it had been confronted with the stark reality that less than 24 hours after Tinubu took over the reins of power, Nigerians woke up to see the pump price of petrol shot up to N600 per litre and N750 per litre in the black market, calling on Nigerians to be ready for more anti-people policies by the government of the ruling All Progressive Congress (APC).

Obiora Ifoh, the Abure’s led-NWC National Publicity Secretary, stated this yesterday in a statement made available to journalists in Abuja.

He said though Labour Party had during its campaign promised to end the subsidy regime, but would not have gone ahead to announce the removal by a presidential fiat without working out modalities to cushion the effects it might have on the people.

He said: “As we speak now the queues are back again and Nigerians will, as was the case in the previous administration, begin to keep vigils in the filling station to get just a few litres of petrol.

“As expected commercial transporters have hiked their trip fares across the country in response to the developments. While product hawkers are once more the king of the jungle.

“This scenario easily reminds one of the story of a certain Pharaoh who on assumption of throne empowered his task-masters to tripled the daily tasks of the Jews.

“What a way to announce once emergence as the sheriff in town. President Tinubu’s first executive proclamation was such that it is purposed to inflict pains on Nigerians.

“Labour Party, while campaigning in the last election also proposed ending the subsidy regime, however, on the condition that necessary policies and actions would have to be in-situ.

“The removal of subsidy by a presidential fiat as witnessed yesterday was not only shocking but practically took every Nigerian by surprise. We advise Nigerians to brace up for more shocks and surprises in the days ahead.

“Labour Party is therefore condemning the unilateral decision by President Tinubu who without any form of consultation with the stakeholders particularly, the Labour unions removed the subsidy on petroleum and has instantly pushed Nigerians further into hardship.”

The party however called on the various unions, social activists and Nigerians in general to “be watchful and ensure that democracy is not derailed by whatever means and guise”