Nigeria finally removes fuel subsidy after Ghana decision

Category: Lead Story, Oil & Gas 6 35

The federal government of Nigeria January 1, 2012, finally and officially removed fuel subsidy, reports from the Nigerian media say.

This was announced by Nigeria’s Petroleum Products Pricing Regulatory Agency (PPPRA) in a statement.

According to the PPPRA, a litre of petrol, Premium Motor Spirit (PMS),  will now sell for N141.

Courtesy of the Vanguard News, PPPRA’s statement reads:

“Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004.”

“By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly and posted on the PPPRA website.”

“Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012.”

“Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding.”

“The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.”

“The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.”

“In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.”

Ghana, December 29, 2011 also removed subsidies on fuel thereby increased prices on petroleum products. The country cited two key factors – the increase in crude oil prices and the depreciation of the Ghana cedi.

A statement signed by Mr Alexander Mould, Acting CEO of the National Petroleum Authority (NPA), said the prices of petrol and diesel will go up by 15% each at GHp175.48 per litre and GHp 177.09 per litre respectively while LPG will go up by 30% at GHp 136.19 per kilo.

The cut of fuel subsidies in Ghana and Nigeria is reported to have been due to pressure from the International Monetary Fund (IMF).

The Reuters news agency reports December 29, 2011 that “Ghana, which joined the club of oil producers in West Africa last year, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies.”

Countries such as Nigeria, Guinea, Cameroon and Chad are reported to have come under similar intense pressure from the IMF to remove subsidies, the report said.

According to Reuters, the IMF argued that the fuel subsidies are not effective in directly aiding the poor but rather promote corruption and smuggling.

By Ekow Quandzie

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35 thoughts on “Nigeria finally removes fuel subsidy after Ghana decision

  1. obaro

    this is totaly unfair.b’cos transportatn is a very important factor in d nigerian economy,nd any increase in d cost of fuel wuld lead to cost in everything dat is needed for every day’s need.when some of us can barely feed.

  2. Usman Ahmed

    Why IMF are putting their mouth on nations cruide oil? They should stop giving loan to us if that is what they will be doin.

  3. cor. osita .f.c.Edward

    i think the goverment have greater plan to the masses .there’s adage that says that if you take infulence of wath mouth will said you will not raise your head from the ground.so i mean that the impart will effect the masses but we must enduor

  4. Anonymous

    if the removal of the oil subsidy will properly deregulate the oil sector and allow viable private investors to instigate healthy competition regulated by market forces as it is in the communication sector it will help the nation’s economy and the welfare of Nigeqians. The Nigerian government must be sincere and accountable to make this work out well. Gnd bless Nigeria.

  5. Wilson Sylvanus

    The case of Nigeria is in Gods hands,a country that sustains less than 15% of its populaton.The leadership has failed the citizenry,i implore the general public to look up to God.the government of Goodluck has nothing to offer this nation,let God raise us a man.

  6. Ogbu

    Kudos to GOODLUCK, subsidy is worth removal bc it courses waste and corruption. Now we can enjoy steady supply at a similar price with our neigbour countries.

  7. Mathew

    This is totally wickness, selfishness and greedness, mr president i bet you. You naija’s last leader

  8. John Freeman

    Fuel subsidy is removed on the account of smuggling,corruption &IMF pressure,means Nigeria has TOTALLY lost battle against CORRUPTION,since corruption can’t be removed but fuel subsidy.my advice is that, FGN should SCRAPE OFF ICPC,EFCC &Other related anti-corruption agancies.if these agances remain,they have no work to do,because both them & the FGN have failed… Corruption has pushed Nigerian economy to be detected by IMF.

  9. king jaja

    Guys read and read again you will then clearly understand that the IMF are taking a positive step on this issue, first i will be the first in Africa to say a big NO to the IMF but not on this issue,

    THE FINAL PART OF THIS ARTICLE READS: The IMF argued that the fuel subsidies are not in directive aiding the poor but rather promotes corruptions and smuggling, so you see?

    yes we all will feel it but all happened due to the greediness of our leaders. With all the subsidies how many people in your areas have access to cooking gas?

  10. Anonymous

    Watch out for the mother of all protests! Nigerians can not pay 4d crime commited by d few stealin subsidy fund.

  11. Matrix177

    The patient dog eats the fatest bone so they said, iam urging Nigerians whatever IMF has for the country will be manifested whether good or bad, lets just watch and see my people.

  12. Anonymous

    Nna men;no bi small tin o,this fuel subsidy removal don affect all Nigerians;this one go make tins uneasy 4 the rich & the poor,N140 is too much.

  13. John Freeman

    Fuel subsidy doesn’t cause corruption & smuggling,human beings cause it.So why not remove the human beings who are the cause?Pressure from IMF is another cause.IMF again,aother REPULIC OF IMPERIALISM in Nigeria

  14. mattew

    If nigerians should accept this ill fate of fuel subsidy removal with open arms without putting up a good fight wiv d the FG. Then I would knw that we have failed as a country. IMF is another wing of impearlism pls don’t be fooled

  15. friday

    Removing fuel subsidies in the Nigerian economy is not the gate way to economic growth and development but will continue to comatose the economy.

  16. Anonymous

    The removal of oil subsidy will only cost the standard of living of nigeriaS and increased the crime rate in the country .

  17. Enter your name...

    The FGN should just be considrate abt it, even if d subsidy are to b removed, d price per liter should b bit down, to avoid protest nd strike all over d nation.

  18. Anonymous

    The FGN should just be considrate abt it, even if d subsidy are to b removed, d price per liter should b bit down, to avoid protest nd strike all over d nation.

  19. Anonymous

    Mr president of aso rock not nigeria,cos u suppose to remove all ur corrupt friends that take nigerians 4granted bcos ur policy only focus on economy not mind d hardship it will cause nigerians.mr goodluck u are a figure dat lacks leadership attributes.

  20. Enter your name...

    David E Ekpenyong if the removal of subsidies will help nigeria then we all should endour but our politician should be patriotic and accountable to the people

  21. BESO

    IMF is responsible for this. They dont want africans to grow thats why the give us wrong policies. I have read that IMF is the one pushing for this and am convinced its true cos it happened immediately after imf chief left nigeria

  22. besong

    when the IMF chief visited nigeria this december, i just told my friends nigeria will cry soon. Whites are wicked. They dont want africa to grow

  23. Bright Damcher.

    Pls Nigerians let support the fuel subsidy. Its for our good, transforming a Nation’s economy always comes bitter but ends sweet.

  24. Martha

    I can’t understand what Nigerian are protesting about, is fuel subsidy more important than the lives of innocent citizens that are been lost to Boko Haram activities almost everyday?, why can’t we all protest against that “Islamic set” and chase them back to Sudan, Chad, Niger and probably Somalia where they came from? we didn’t protest the killing of our corp members and innocent and defenseless citizens that died during the election crisis. Nobody was caught, nobody was charged to court , nobody was prosecuted and of course we know the person(s) behind it.

    Now concerning the subsidy removal, what do Nigerians think will happen now that Ghana has removed hers? let me tell you, our oil dealers will begin to smuggle fuel into Ghana and that will result in MASSIVE OIL SCARCITY IN NIGERIA. Make una think em well, God Bless Nigeria.

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