Fuel Price Hike: Tinubu Listen to Dangote’s Call for Total Removal of Subsidy - Marketers

President Bola Tinubu's administration has been under scrutiny following the hike in fuel prices.

This decision aligns with the advice of Aliko Dangote, President of the Dangote Group, who advocated for the complete removal of petrol subsidies.

The Nigerian National Petroleum Company Limited (NNPCL) recently increased the fuel pump price to N1,030 from N897, marking the third such increase in two months.

The move to remove the subsidy is part of a broader strategy to deregulate Nigeria's oil and gas sector, as outlined in the Petroleum Industry Act. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), supports this approach, suggesting it is a necessary step towards implementing the Act. He stated, "If indeed we listen to Aliko Dangote’s request... maybe this is one step to ensuring that the Petroleum Industry Act is implemented."

This policy shift has sparked a debate across various sectors. While some industry leaders see it as a positive move towards economic reform, others, like the Nigeria Labour Congress (NLC) and the Centre For the Promotion of Private Enterprise, have expressed concerns.

They argue that Nigeria may not be ready for full deregulation, citing potential economic instability and increased hardship for citizens.

The controversy highlights the need for a balanced approach that considers both economic reforms and social welfare. Policymakers might explore phased implementation strategies or targeted relief measures to mitigate the impact on vulnerable populations.

Engaging stakeholders in dialogue could also help address concerns and build consensus around the reform process.