Former Vice President Atiku Abubakar has reacted to the removal of fuel subsidy by the federal government, saying the decision was coming at the right time.
Recall that the federal government had in April bowed to long-standing pressure to restructure the downstream segment of the Nigerian oil industry through the removal of fuel subsidy.
This comes as the global oil industry continues to grapple with the low demand and subsequent price slump that have been caused by the Coronavirus pandemic.
According to the GMD of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, Nigeria would no longer be paying for under-recovery or subsidy on petrol, especially due to the current development in the global oil sector.
Commenting on his verified Twitter handle on Friday, Atiku urged the federal and state governments to remove other impediments and roll out incentives to spur investments in the oil sector.
He said: “The federal government finally withdraws from the fuel subsidy and price-fixing bazaar that had been rife with corruption and stalling investments.
“This is something patriots have been calling for and for which I was demonised.
“The stoppage of subsidy and price-fixing is a right move, although it should have come earlier when the economy was stronger.
“Federal and state governments should proceed to remove other impediments and roll-out incentives to spur investments in the sector, especially the numerous refineries that had been licensed but are yet to be built.
“Then ensure the quality of fuel meets set standard.”
The Petroleum Products Pricing Regulatory Agency (PPPRA) had on Thursday removed the cap on the price of Premium Motor Spirit (PMS) and gave oil marketers the licence to fix the price of the commodity.
In a document titled: “Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,” and signed by its Executive Secretary, Abdulkadir Saidu, the Agency said the price of PMS would be determined by market forces henceforth.