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NGO calls for Senate firmness on subsidy removal on petrol.

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The Integrity Youth Alliance, a civil society organization, has said that Senate leadership must be decisive in the proposed elimination of the Premium Motor Spirit (PMS) subsidy, popularly called gasoline.

He said delaying removal of the subsidy was akin to postponing the obvious when the nation's oil corporation had become a veritable business conglomerate expected to turn a profit for shareholders.


Mr. Adewole Kehinde, chairman of the group's board, said in a statement on Wednesday that the Petroleum Industry Act (PIA) had already made the fuel subsidy payment a matter of law. .



He recalls that the president of the Senate on Tuesday, while speaking to journalists, had assured Nigerians that the oil subsidy would not be eliminated for now.


According to him, President Muhammadu Buhari has not authorized anyone to remove the fuel subsidy as speculated in social and mainstream media.




The president of the board, however, pointed out that the Oil Industry Law did not provide for the payment of subsidies, since it provided that as of July 2022, the nation should be outside the subsidy regime.


“For the purposes of clarification, the Law establishes joint stock companies by virtue of article 65 of the Law.


“NNPC Limited must conduct its business on a commercial basis profitably without recourse to government funds and its Memorandum and Articles of Association will set out these restrictions.


“NNPC is also required to declare dividends to its shareholders and retain 20 percent of profits as retained earnings to grow its business like any other incorporated entity incorporated under the Companies and Allied Matters Act, as provided in Section 53 ( 7) of the Act.

“The subsequent deregulation through the Law will bring about the liberalization of the sector, which would make it possible for all traders of petroleum products to obtain their products from anywhere and sell them at any price dictated by the forces.
NGO calls for Senate firmness on subsidy removal on petrol.

The Integrity Youth Alliance, a civil society organization, has said that Senate leadership must be decisive in the proposed elimination of the Premium Motor Spirit (PMS) subsidy, popularly called gasoline.

He said delaying removal of the subsidy was akin to postponing the obvious when the nation’s oil corporation had become a veritable business conglomerate expected to turn a profit for shareholders.

Mr. Adewole Kehinde, chairman of the group’s board, said in a statement on Wednesday that the Petroleum Industry Act (PIA) had already made the fuel subsidy payment a matter of law. .

He recalls that the president of the Senate on Tuesday, while speaking to journalists, had assured Nigerians that the oil subsidy would not be eliminated for now.

According to him, President Muhammadu Buhari has not authorized anyone to remove the fuel subsidy as speculated in social and mainstream media.

The president of the board, however, pointed out that the Oil Industry Law did not provide for the payment of subsidies, since it provided that as of July 2022, the nation should be outside the subsidy regime.

“For the purposes of clarification, the Law establishes joint stock companies by virtue of article 65 of the Law.

NNPC Limited must conduct its business on a commercial basis profitably without recourse to government funds and its Memorandum and Articles of Association will set out these restrictions.

NNPC is also required to declare dividends to its shareholders and retain 20 percent of profits as retained earnings to grow its business like any other incorporated entity incorporated under the Companies and Allied Matters Act, as provided in Section 53 ( 7) of the Act.

“The subsequent deregulation through the Law will bring about the liberalization of the sector, which would make it possible for all traders of petroleum products to obtain their products from anywhere and sell them at any price dictated by the forces.

“The competition that came from that would have helped force prices down to the benefit of citizens,” Kehinde said.

He noted that removing gasoline subsidies would free up revenue for the government to provide essential services while also boosting investments in the downstream sector.

According to him, the benefits of eliminating fuel subsidies are enormous.

He said that with the elimination, the operators would have the opportunity to recover their costs and, in the long run, investments would receive a massive boost and more jobs would be created.

Kehinde added that resisting deregulation under the guise of fighting for the welfare of Nigerians was just an attempt to trick Nigerians into thinking they could eat their cake and still have it.

“So instead of subscribing to this deceptively populist course of action, the National Assembly leadership should follow the path of genuine patriotism with which it has long been associated by adopting, promoting and supporting a new integrated progressive reform at the PIA.

“That is the surest way to remove the rot that has obstructed the path to development in our oil sector,” he said.

Source: NAN

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