The Federal Government has been warned by the Managing Director of 11 Plc, formerly Mobil Oil Nigeria Plc, Tunji Oyebanji, of the impact fuel subsidy removal will have on Nigerians.

Oyebanji said before the government goes ahead to remove the subsidy, there’s a need for stakeholders’ engagement to have better knowledge of the ripple effect.

He said with the country struggling with foreign exchange scarcity and multiple forex rates, the removal of subsidy could cause a significant rise in fuel price at the filling station.

This was disclosed in a report by The Sun on Monday, which says Oyebanji questioned where oil marketers will be expected to source for forex to import or buy fuel that will be sold to Nigerians at the petrol stations.

Recall that President Muhammadu Buhari had stated that fuel subsidy will be removed in the second quarter (Q2) of 2023, to save the country’s revenue.

He explained that in the official market, the foreign exchange rate is about N450 to a Dollar, but it goes for N730 to a Dollar in the black market.

Oyebanji wondered if the government will allow the oil companies to access Dollars in the official market to buy the refined product or if the firms will have to approach the black market where the United States currency is sold at a significant price.

The manager said if the firms are forced to buy from the black market, then Nigerians will have to pay significantly to buy fuel at the pump, as the cost of purchasing the USD will be passed to the customers.

‘‘If we are to start importing petrol today, are we going to be getting exchange rate at the official price or we have to source from the black market at over N730 to a Dollar as against the official price of N450 to a Dollar. If it is to be sourced at the black market that means it will shore up the price of petrol and Nigerians must be prepared to pay this price

‘‘If NNPC stops importing today when it eventually ceases to subsidize petrol, does that mean there would be no product?” Oyebanji asked.

https://applesbite.com/oil-firm-boss-tunji-oyebanji-warns-fg-against-fuel-subsidy-removal/

Does the government care?

Thieves,fuel subsidy must go

Nobody should remove petrol subsidy completely because Nigerians are terribly going to suffer.

But then, we live in a country where suffering and smiling is a way of life. So, even if the petrol subsidy is removed completely, people will only complain for one week and get used to it.

They should rehabilitate our refinaries, and remove that rubbish

Who fuel subsidy help??

Does the subsidy even make fuel cheap?? Only when it would get cheap is only when we refine home

Fuel subsidy will need to go as it distorts markets, disincentives investment and the FG cannot afford it given how much debt it has incurred.

That being said, its impact on inflation will be brutal so I would recommend it's phased out instead of taken off in one go.

The amount of suffering that awaits Nigerians in the coming years will be unprecedented.

SmartPolician:
Nobody should remove petrol subsidy completely because Nigerians are terribly going to suffer.

But then, we live in a country where suffering and smiling is a way of life. So, even if the petrol subsidy is removed completely, people will only complain for one week and get used to it.

Not true. Tinubu simply has to work well and sincerely with Dangote refinery on behalf of securing a good deal for ordinary Nigerians, balanced with the need for Dangote to make profit, to ensure fuel subsidy removal is a fairly painless success.

If the output of the Dangote refinery is not a gross over-estimation then we can all be optimistic because the refinery's touted daily capacity is claimed to be such that can meet Nigeria's daily demand for PMS with surplus to even sell abroad to gain valuable forex.

Tinubu, with the advice and assistance of his technocrats, will have his plans in place for the speedy commencement of operation of Dangote refinery. No better enabler or partner of industry in Nigeria than Tinubu.

I will repeat though that my views are based on the veracity of the claims made per the daily output capacity of the Dangote refinery. Virtually everyone is a liar and scammer in Nigeria so let us hope that is not the case with the Dangote refinery because it will solve our problems easily if touted capacity is accurate.

They should remove it

Princessstee:
They should remove it

Tinubu will 100% remove subsidy because he is the leader, with the investment partners already in his corner, best placed to remove fuel subsidy most painlessly for Nigerians.

Unlike others, Tinubu lives and breathes developmental politics. Tinubu and Lagos rolling out the red carpet to ensure Dangote refinery ends up in the State is all part of Tinubu's visionary approach to politics and his masterplan to become a reformational and great President.

What Buhari, Atiku or Obi cannot ever get out of Dangote , Elumelu, Bua, Adenuga etal Tinubu will with ease because he speaks their language, has always abided with them, invested in them and shown commited faith in their endeavours and struggles.


When Ogun State, the original destination of Dangote refinery in the SW, dithered and played myopic politics, Tinubu and Lagos moved quickly to ensure Dangote ended up in Lagos.

Today, Captains of industry cannot wait to serve, partner with and please a man they believe, from private association with him, will be an outstanding president,

I won't pretend to know more than others but I predict here and now that fuel subsidy removal, many made out will be near impossible to achieve, Tinubu will deliver effortlessly with his development partners he has always invested in when others, like Obi and Atiku, could not even begin to understand let alone subscribe to the Yoruba adage "da omi si waju te ile tutu". Invest in people and processes to reap rewards in future.

I believe that what others (OBJ, Jonathan and Buhari) could not do, in the most critical sectors pivotal to Nigeria's success, Tinubu will achieve relatively easily.