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FG has no option than ending fuel subsidy –MOMAN



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dcab major oil marketers association of nigeria moman x
dcab major oil marketers association of nigeria moman x

Major Oil Marketers Association of Nigeria (MOMAN) has said ending subsidy payment on Premium Motor Spirit (PMS) is extremely difficult but that the Federal Government has no other option in the light of current economic realities in the country.

MOMAN also called for massive investment by the government in various sectors, such as mass transportation, healthcare and education, to successfully wean off Nigerians from petrol subsidy.

Chairman of MOMAN, Olumide Adeosun, made this known during a panel session at an energy conference in Lagos.

He spoke on the topic: “Energy Transition, Petroleum Industry Act (PIA), Petroleum Pricing and the Way Forward for the Downstream Sector.”

Adeosun, represented by Clement Isong, chief executive officer of  MOMAN, said, though it would be extremely difficult to wean Nigerians off cheap PMS, also known as petrol, “it is something that must be done as there are no more viable options.”

He said  the subsidy bill to the Federal Government may be between N5 trillion and N6 trillion this year and that Nigeria cannot afford it.

“To wean Nigeria off this subsidy, a lot of investment must be done to sensitise Nigerians in convincing them and finding alternatives. We need to begin to remove the subsidy and mitigate the pains Nigerians will feel when petroleum prices begin to manifest their true value.”

Adeosun said marketers were optimistic that the industry was headed in the right direction with the enactment of the PIA 2021 which he said was an excellent piece of legislation.

The MOMAN chairman said marketers were also convinced that gas (the decade of gas was declared by the Federal Government in January 2021) was clearly the way forward.

He, however, said the increase in gas prices worldwide and the unavailability of the product had made it a little more difficult in the roll out.



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