Petrol Subsidy Removal: You Goofed; Group Tells Senate President

The Integrity Youth Alliance has said that the President of the Senate, Senator Ahmed Lawan got it wrong on the removal of subsidy on Premium Motor Spirit, popularly called Petrol.

In a press release signed by Board Chairman of the Group, Adewole Kehinde, he said that PIA has made fuel subsidy payment an issue of Law.

“The truth is that the Petroleum Industry Act did not make provision for subsidy payment as it provides that by the end of July 2022, the nation should be out of the subsidy regime, ” the statement said.

The statement further said, “For the purpose of clarification, the Act establishes incorporated joint companies under Section 65 of the Act. The NNPC Limited is to conduct its affairs on a commercial basis in a profitable manner without recourse to government funds and their Memorandum and Articles of Association shall state these restrictions.

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

“The deregulation of the downstream through the Petroleum Industry Act will bring about liberalization of the sector which would make it possible for all petroleum products marketers to source their products from anywhere and sell at any price dictated by prevailing market forces.

“The competition arising from that would have helped to force pump prices down to the benefit of the citizens.

“Petrol subsidy would free revenues for the government to provide essential services and at the same time boost investments in the downstream sector.

“The benefits of fuel subsidy removal are huge. With removal, operators would have the opportunity to recover their costs, and in the long run, investments would receive massive boost and more jobs would be created.

“Resisting deregulation under the guise of fighting for the welfare of Nigerians is only an attempt to hoodwink Nigerians into believing that they can eat their cake and still have it.

“Therefore, rather than subscribing to this deceptively populist course of action, the leadership of the National Assembly should toe the path of genuine patriotism with which it has long been associated by embracing, promoting and supporting the new progressive reform embedded in the PIA.

“That is the surest way of eliminating the rot that has clogged the road to development in our petroleum sector, ” the statement concluded.

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