Subsidy Removal: Hold Government Accountable, IPMAN Tells Nigerians

Independent Petroleum Marketers Association of Nigeria (IPMAN), has urged Nigerians to hold the government accountable for the proceeds shared from subsidy removal and foreign exchange rate.

National Operations Controller, IPMAN, Mr Mike Osatuyi, also asked Nigerians to hold the government accountable for the money received from FAAC.

He spoke on Sunday at a session tagged; “The aftermath of fuel subsidy removal” on TVC in Lagos.

Osatuyi said that with over N2 trillion shared by the three tiers of government.

According to him, it was high time Nigerians began to demand more accountability from the government; both at the state and local government levels.

He said, “Subsidy removal will attract more money for the government. The foreign exchange rates have been unified and the subsidy payment that was usually paid on monthly bases now goes to the government’s pulse.”

The IPMAN boss said that the N2 trillion shared was higher than previous money being shared to the tiers of government, adding that the government ought to do more for its citizens.

He said that money that would have been frittered away, in a month, via fuel subsidy will now go into the coffers of the government to improve the living conditions of the people.

He said, “What this means is that there will now be more money available for the government to embark on infrastructure development.

“Government at all levels will become more solvent, be in a stronger financial position to easily pay new minimum wage and fund development in critical sectors, especially in education, healthcare and public transportation.

“Going forward, Nigerians should begin to focus attention on their states and local governments to demand more accountability and transparency in the use of public funds.”

He added: “The highest money l have ever seen shared was N800 bllion and not as higher as N2 trillion. The money came through subsidy and forex.

“In another two to four months when all loopholes have been blocked sharing formula can go as high as N3 trillion and above.

“The problem is that would government use the money well to cushion the effect of suffering?

“If states use the money on infrastructures to the development of Nigerians and we are paying more on petrol, it will not be better.

“I hope and pray that government use the money judiciously and transparently for the development of Nigeria and Nigerians. ”

On fuel importation, Osatuyi said that currently the price of petrol is being determined by market forces.

He said that since subsidy had been removed and the old stock of petrol has been exhausted, marketers are now importing products.

“The market has been opened and it will be determined by the parameter on the landing cost, the cost of crude per barrel and exchange rates.

“The era of subsidy has gone. So, marketers can now import petrol based on market fundamentals.

“The crude oil price and forex are determining forces in petrol importation and pump price determination.”

Osatuyi said that if more petrol is imported into the country, it would drive down the price because there will be competition, efficiency and more service to customers.

“As a private sector, they are after cost reflective and also attract product to customers.

On Compressed Natural Gas (CNG), Osatuyi said that the National Gas Expansion Programme (NGEP) that was initiated by the government in 2010 was later suppressed.

He said that CNG was a great alternative to petrol but how ready are we?

He acknowledged that both MOMAN, IPMAN and DAPPMAN had the capacity but the conversion of vehicles to CNG is also an issue.

The IPMAN operation controller urged Federal Government to focus on vehicle conversion, adding that it cost between N400,000 and N500,000 to convert vehicles.

He added that the government can also subsidies vehicles converting to CNG because it’s cleaner and cheaper.

“CNG is durable, it ought to have been done years back, the CNG is a big option.

“Presently, over 40 per cent of vehicles in Benin State go on gas through NIPCO. Government can replicate such in every state.

On Dangote Refinery, Osatuyi said, “We should thank Dangote for the bailout of the masses in the country’s downstream sector.

“At least we have one of the biggest refinery in Africa cited in Nigeria.

“There are benefits to Nigerians, when a marketer imports petrol he will one pay various charges and levies, but with Dangote refinery some of these levies will go off and cut off drastically than those imported.

“A lot of benefits will be attracted to Dangote refinery coming on stream, it will be abolished sourcing for forex.

“Nigeria is spending billions of dollars to import, that is while we should encourage local refining.

He said: “Because we import virtually everything in Nigeria and being paid in dollars that was why things are expensive.

“When Dangote Refinery commences operation, it will save the country billions of forex and also create opportunities for our teaming youths.”