‘It won’t solve Nigeria’s problem’, Oil Marketers (IPMAN, PETROAN) begs Atiku not to return petrol subsidy

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have rejected calls for the reinstatement of petrol subsidy, urging the Federal Government to focus instead on reviving Nigeria’s refineries and critical petroleum infrastructure.

The two petroleum marketers’ groups stated their positions in separate interviews with VERY NIGERIAN while reacting to former Vice President Atiku Abubakar’s recent call for the restoration of a targeted fuel subsidy if elected president in 2027.

IPMAN spokesperson, Chinedu Ukadike, argued that bringing back subsidy would not address the fundamental challenges affecting the downstream petroleum sector.

He said the priority should be the full rehabilitation of the Port Harcourt, Warri and Kaduna refineries, as well as the restoration of pipelines and the country’s 21 petroleum depots.

According to Ukadike, increased domestic refining capacity would promote competition, reduce dependence on imported petroleum products and help stabilise petrol prices.

“All these things are negative. The issue before this President is the restoration of all the refineries that are working in Nigeria. The restoration and revival of all the pipelines,” he said.

He added that the restoration of petroleum depots would also strengthen the distribution network and reduce pressure on the downstream market.

“Whether we remove subsidy or not does not arise because competition will calm down the price volatility and reduce prices drastically,” Ukadike said.

He further argued that greater domestic refining would reduce Nigeria’s exposure to fluctuations in the foreign exchange market and lessen dependence on imported petroleum products.

On his part, PETROAN National President, Billy Gillis-Harry, also opposed any attempt to return to the subsidy regime.

Gillis-Harry argued that the former subsidy system represented a major missed opportunity for Nigeria, claiming that government previously borrowed huge sums to fund petrol subsidies instead of investing in infrastructure and human capital development.

“The subsidy that we were operating under all the administrations was a stark loss of opportunity for the future of Nigeria,” he said.

According to him, the Federal Government was borrowing nearly N2 trillion to finance subsidy before President Bola Tinubu announced its removal on May 29, 2023.

He described the decision to remove the subsidy as necessary, arguing that all presidential candidates in the 2023 election had debated the policy.

“Subsidy removal was a subject of discussion by all the presidential candidates. So, if there is a reason why any one of them is thinking to say subsidy will be brought in the back, it shows that they don’t love Nigeria,” Gillis-Harry said.

He also questioned how the government would finance any proposal to reduce petrol prices to N500 per litre, asking whether such a policy would require fresh borrowing.

Gillis-Harry further challenged proponents of subsidy to provide clear calculations showing the cost of crude oil production and explaining precisely which component of the petroleum value chain should receive government support.

He also criticised Atiku’s record as former vice president, questioning what he described as limited achievements in the petroleum sector during his tenure.

Meanwhile, the PETROAN president maintained that the removal of subsidy had forced Nigerians to adopt greater financial discipline amid the changing economic environment.

The debate over petrol subsidy has intensified ahead of the 2027 presidential election, with Atiku advocating a targeted and capped intervention to reduce the cost of living, while supporters of the current policy argue that restoring subsidy would place additional pressure on government finances.

IPMAN and PETROAN, however, maintain that strengthening domestic refining, pipelines and petroleum distribution infrastructure offers a more sustainable route to reducing petrol prices than returning to a subsidy regime.

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