Following the pronouncement by Nigeria’s new President, Bola Ahmed Tinubu, in phasing out fuel subsidy and the sudden appearance of queue at the fuel stations in most part of the country, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPCL) have in one accord drum support for federal government’s decision, thus said it is pathway to a more sustainable growth for the nation.
The 16th President of Nigeria during his inaugural address and swearing-in at the Eagle Square in Abuja on Monday 29th May 2023, announced the end of Premium Motor Spirit (PMS) subsidy, stating that, it has increasingly favoured the rich than the poor and can no longer justify its ever-increasing cost in lieu of drying resources.
Reacting to this new development, both the NMDPRA and NNPCL assured Nigerians that there will be no need for panic as there is sufficient supply of PMS to meet demand.
The Authority in a statement issued by its General Manager, Corporate Communications, Kimchi Apollo on Tuesday, said, “NMDPRA wishes to address concerns regarding the announcement of the removal of subsidy on Premium Motor Spirit (PMS) by President Bola Ahmed Tinubu, thus:
“Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment 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 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”.
The NNPCL Group Chief Executive Officer, Mele Kolo Kyari while addressing the press at the NNPC tower yesterday, described the new development as a welcome decision. He decried the challenges the Company faced making payment of subsidy when it continued operation.
“This has really been a major challenge when NNPC’s continued operation. We have been funding the subsidy from the NNPC cash flow since government is unable to defray the cost of subsidy that is due to the company.
“We believe that this will free resources for the NNPC to continue to do the great works that this company would do for our country and it allows us to function as a very commercial entity”, Kyari revealed.”
He therefore enjoined Nigerians who are scared of potential changes to price of PMS product not rush to fuel stations to buy more than what they need as the Company is working assiduously to ensure that normalcy is restored.