Atiku: IPMAN has put Tinubu’s subsidy argument into shame

Former Vice President Atiku Abubakar has praised the Independent Petroleum Marketers Association of Nigeria (IPMAN) for supporting government intervention with domestic refiners to lower petrol prices. Atiku views IPMAN's endorsement as significant as it came from industry insiders who have firsthand knowledge of the impact of expensive petrol on businesses and families. He argues that IPMAN's stance aligns with his own proposal to strengthen Nigerian refining and make fuel more affordable.

Atiku criticizes President Tinubu's argument, which has centered around confusing import subsidies with production-linked interventions aimed at enhancing domestic refining. He emphasizes that the distinction between these two strategies is crucial in delivering tangible relief to consumers. Atiku explains that Nigeria's ability to process crude oil at home should not be undermined, as producing the raw material and then importing refined fuel is economically unwise.

He stresses that Nigeria should prioritize targeted intervention to strengthen domestic refining and ensure affordable access to petroleum products. Atiku believes that this approach aligns with the objectives of the Petroleum Industry Act, including promoting processing within the country and ensuring affordable fuel for consumers. He argues that the real test of petrol policy is its impact on Nigerians' purchasing power rather than just the appearance of cheap petrol in dollars.

The former Vice President highlights the DailyFuels Fuel Affordability Index, which places Nigeria at 91 on the affordability ranking, indicating that the average Nigerian requires significant work hours to afford one litre of petrol. He argues that Tinubu's administration has failed to address the true cost of fuel for ordinary Nigerians, as the expense is felt through various channels, including transportation, food, production, and distribution.

Atiku invites IPMAN to collaborate in implementing the proposal, urging the association to contribute its expertise and market knowledge in monitoring and executing the policy when the government assumes office in 2027. He emphasizes that IPMAN's insights on where distortions and leakages occur are vital in ensuring that the intended benefits of the policy reach the Nigerian consumer effectively.