By John Ikani
Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva says the signing of the Petroleum Industry Bill (PIB) into law by President Muhammadu Buhari does not translate into automatic removal of the Premium Motor Spirit (PMS) subsidy.
Recall that Sylva had in July said once the PIB becomes a law, subsidy would seize to be.
But the minister in an SMS to newsmen through his Special Adviser on Media, Malam Garba Muhammad, said fuel subsidy remains for now.
“We’ll engage you (reporters) on this at the appropriate time,” the message read.
Major Oil Marketers Association of Nigeria (MOMAN) also holds the same view.
Its Executive Secretary, Mr. Clement Isong, said: “the minister is yet to provide transitional regulations leading to removal of subsidies.”
What you should know
According to Sylva, the removal of petrol subsidy is in the best interest of Nigeria, especially as the PIB has no provision for subsidy.
“This (subsidy removal) is desirable for the interest and growth of Nigeria. Of course, everybody will have their perspectives, but from where I sit, I believe that subsidy removal is the best thing for Nigeria, not just the industry,” he said.
“The removal of subsidy has the potential of unlocking a lot more funds for deployment to development. Unfortunately, what we are doing by way of subsidy is like cutting our nose to spite our face.”
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