April 20, 2024

FG Saves N400bn In Four Weeks On Fuel Subsidy Removal – IPMAN

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By Simeon OSAJIE

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okonkwo has said that the federal government has racked in N400 billion due to fuel subsidy removal in the last 30 days.

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Recall that in a meeting with oil and gas operators in February, Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited, NNPCL, had stated that the country spends N400 billion monthly on fuel subsidies.

While speaking on the state of the sector owing to the removal of the subsidy and changes in the Country’s foreign exchange market, Okonkwo said that the deregulation has a long time impact.

“The development would either lead to an increase in fuel price or a decrease depending on the market-determined price of forex,” he said.

He added that the impact on the masses would gradually decrease by introducing Compressed Natural Gas, CNG, into the sector.

“You know how much the government is spending monthly on fuel subsidies payment, but that expenditure to the tune of dollars or Naira will be saved.

“The government has indeed reduced spending on fuel subsidies, though the thing is biting, so we have drafted an alternative in Compressed Natural Gas, CNG,” he said.

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