The Independent Petroleum Marketers Association (IPMAN), has urged Nigerians to hold the government accountable for the proceeds shared from subsidy removal and foreign exchange rate.
Its National Operations Controller, Mr Mike Osatuyi, advised 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, “It is time Nigerians begin to demand more accountability from government; both at the state and local government levels.
According to him, “Nigerians should hold the government accountable for the money received from FAAC. Subsidy removal will attract more money for the government.
“The foreign exchange rates have been unified and the subsidy payment that was usually paid monthly now goes to the government purse”.
The IPMAN boss revealed 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.
"What this means is that there will now be more money available for the government to embark on infrastructure development.
“Governments at all levels will become more solvent, be in a stronger financial position to easily pay the 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 said.
Osatuyi further stated, “The highest money l have ever seen was N800 billion and not as high as N2 trillion. The money came through subsidies 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 the government use the money well to cushion the effect of suffering,
“If states use the money on infrastructures for the development of Nigerians, and we are paying more on petrol, it will not be better.
“I hope and pray that the government uses the money judiciously and transparently for the development of Nigeria and Nigerians”.
On fuel importation, Osatuyi explained that currently, the price of petrol is being determined by market forces, just as he added 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 parameters 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,” the IPMAN operation controller explained.
Osatuyi suggested 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," he added.
On Compressed Natural Gas (CNG), Osatuyi said that the National Gas Expansion Program (NGEP) that was initiated by the government in 2010 was later suppressed.
While arguing that CNG was a great alternative to petrol, he queried the readiness of the nation, even as 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 the Federal Government of Nigeria (FGN) 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 subsidize 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,” Osatuyi stated.
“We should thank Dangote for the bailout of the masses in the country’s downstream sector.
“At least, we have one of the biggest refineries in Africa, cited in Nigeria.
“There are benefits to Nigerians, when a marketer imports petrol, he will 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 abolish sourcing for forex.
“Nigeria is spending billions of dollars to import, that is why we should encourage local refining," he suggested.
Osatuyi further stated, “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 forexes and also create opportunities for our teaming youths”.
All rights reserved. This material and other digital volumes on this website, may not be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without prior express written permission from THE NEWS ACCELERATOR NETWORK.
For advert placement, please contact thenewsacceleratornetwork@gmail.com or 08033599492.
Post a Comment