The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reiterated its opposition to the removal of petrol subsidy unless the country establishes local refining capacity.

IPMAN argues that if the Nigerian government continues to import all premium motor spirit consumed in the country, removing the over N3.5 trillion subsidy would lead to arbitrary pricing,

exposing Nigerians to financial hardship. Chief Chinedu Ukadike, the IPMAN Public Relations Officer, stated that local refining should be the government’s priority, and any decision to remove the subsidy should be left to the incoming administration. Ukadike also supported PENGASSAN’s position that refineries should be fixed, and pipelines repaired to move petroleum products from the coastal areas closer to marketers. He emphasized that unless these factors are in place, petrol importation cannot be curbed, and exorbitant pricing cannot be avoided. The PENGASSAN President, Comrade Festus Osifo, advised the incoming administration to remove fuel subsidy as part of efforts to promote the growth of the oil and gas industry, save more, and speed up infrastructural development across the country.

The President of PENGASSAN, Comrade Festus Osifo, spoke to journalists about the adverse effects of past administrations’ commitment to retaining subsidy in Nigeria. He argued that the subsidy has increased the cost of living and hurt the economy, as it has reduced the country’s dollar reserve and frustrated the exchange market. Osifo maintained his stance on the removal of subsidy, as he believes it will help the country save more money and accelerate infrastructure development. He also expressed optimism that removing the subsidy would have a positive impact on the nation’s foreign exchange, which would benefit the citizens. Osifo further emphasized that the downstream sector of the oil and gas industry would grow if the sector was deregulated, and if the government focused on domestic refining rather than relying on imported petroleum products, the country would earn more money from crude oil, which would support other imports and ease the pressure on the USD.