Page 17 - DMEA Week 39 2021

DMEA NEWS IN BRIEF DMEA

POLICY For many though, the colossal subsidy moment.
amount(s) could only be attributable to However, for this piece, the PPPRA
Nigeria’s petrol subsidy bridging and other ancillary costs such as March 2021 template would be borrowed to
differentiate the real subsidy from bridging
marine transport and transporters allowance
removal palaver (reimbursables made to marketers for moving and ancillaries.
petrol in trucks/barges to filling stations and
ALL AFRICA
In July this year, the Minister of Finance, floating mega stations in riverine areas), to
Budget and National Planning, Hajiya Zainab maintain price parity all over the country.
Ahmed, affirmed that government subsidy That is not the case. REFINING
on petrol had risen to some NGN150 billion For emphasis, whilst bridging and its
monthly and made a strident case for its ancillaries are components of the PPPRA’s Osun signs MoU to
removal altogether. pricing template, they do not, in any shape
The issue of subsidy has been a thorny one or form, represent the entire gamut of the establish bio-refinery
in recent years and its burden on the nation’s subsidy regime.
economy has always been trumpeted by the In March this year, there was a general Osun State Governor, Adegboyega Oyetola,
nation’s economic managers and various other uproar when the PPPRA hoisted the Guiding has signed a Memorandum of Understanding
stakeholders. Hajiya Ahmed raised cogent Prices of its template for the month, on its (MoU) between his administration and a firm,
points to support her assertion: “We have a website. The Agency had indicated that owing VirtueplusTwo Integrated Nigeria Limited, for
situation wherein, in a month, the subsidy to market trends, petrol price should attract the establishment of a bio-refinery in the state.
costs as much as N150 billion... that is money a figure of NGN212.61 (upper band) per Situated on a large expanse of land
that the federation account, federal and state litre, at filling stations. The din that followed measuring over 20 acres in Ayekale area in
governments forgo. If this revenue is available the information release was so jarring, it Boripe Local Government Area of the state,
to fund education, infrastructure, health, it reverberated ceaselessly all over Aso Rock the bio-refinery is the first of its kind in the
will reduce our borrowing. It will reduce the corridors and beyond. state.
crises that states are having of not being able Needless to say, the federal government, At the brief signing ceremony witnessed
to pay salaries.” through the NNPC, quickly responded by the state Commissioner for Justice, Mr.
A few days before the minister made and doused the combustible atmosphere, Femi Akande, the governor said it took his
that call, the Managing Director of Nigerian explaining that there was no plan to effect any government long time to carefully study
National Petroleum Corp. (NNPC), Mele price increase. the MoU bothering on the integrity and
Kyari had said the pump head price of fuel The PPPRA also toed the government competence of the firm that would put in
should, at least, read NGN256 per litre, given line and claimed its position was merely place such a multi-million naira project in the
the market dictates of that time. advisory and that it was in no way, advocating state.
Few will argue with the fact that the for a hike in price. The Agency, perhaps in While signing the pact on behalf the
subsidy overhang has become an albatross hearkening to advice emanating from the governor, the Commissioner for Environment
on the weary neck of the nation’s straining corridors of power, quickly yanked off the and Sanitation, Hon.Sola Oladepo, described
economy, especially if viewed from the ‘offending’ Guiding Prices from its website. it as another breakthrough made by Oyetola
Petroleum Products Pricing and Regulatory Such is how volatile and inflammable the in the area of industrialisation of the state.
Authority’s (PPPRA) claim a year ago, that issue of petrol price could be for the Nigerian Oladepo lauded the zeal and commitment
some NGN8.94 trillion was utilised on people, most of whom are reeling under some of the governor at all times to put the
subsiding petrol between 2006 and 2015. heavy and punishing economic burden at the economy of the state and its people on a

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