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Nigeria will retain fuel subsidy in interim after president signed PIB

Nigeria said it will not remove subsidy from domestic fuel consumption immediately in spite of the signing of the Petroleum Industry Bill (PIB) into law by President Muhammadu Buhari.

The minister of State for Petroleum, Timipre Sylva the signing of the PIB does not translate into automatic removal of petrol subsidy.

The newly signed oil industry overhaul regulation did not make provision for fuel subsidy as state policy.

Major Oil Marketers Association of Nigeria (MOMAN) also holds the same view, saying the minister of petroleum resources need to provide transitional regulations leading to the removal of subsidies now.

Sylva had earlier said once the bill becomes a law, subsidy would cease to be.

Also on Tuesday, Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Mohammad Barkindo, said the new law would assist the nation  attain  4 million barrels production per day.

READ ALSO: Gunmen kill six oil workers at project site

Barkindo, in a congratulatory letter to the President, added the law ”will  help harness Nigeria’s potential to achieve its  programme of raising oil production to 4 mb/d and oil reserves to 40 billion barrels, while also drawing on the country’s vast natural gas reserves to provide clean and efficient energy.”

A part of the message reads:  ”I wish to extend my congratulations to you on signing into law the PIB, which marks a significant milestone for Nigeria’s oil industry and a historic achievement for your Presidency.

“With the stroke of a pen, you have inaugurated a new era for the industry following years of legislative efforts to strengthen the legal, regulatory, fiscal and governance framework of the petroleum sector.

“Mr. President, your signature on the PIB caps many years of important deliberations and detailed legislative work.

“I am confident the law marks the beginning of a new era of growth and prosperity that will be beneficial to the petroleum industry and ultimately to the Nigerian people.”

The   Independent Petroleum Marketers Association of Nigeria (IPMAN) also commended the President for signing the bill.

Its National Vice President Alhaji Abubakar Maigandi added that the new law would lead to the appreciation of the naira and lessen forex challenge in the industry.

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