Subsidy Removal: DAPPMAN Wants NPA, NIMASA Levies Paid in Naira

Peter Uzoho

As part of measures to consolidate the recent fuel subsidy removal, petroleum marketers under the aegis of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have listed the payment of several levies by its members in naira, rather than in dollars.

It also urged the government to reduce the levies paid to agencies of government such as the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) and ensure that charges are paid in local currency.

The Chairman of DAPPMAN and Managing Director of Northwest Petroleum & Gas Company Limited, Mrs Winifred Akpani, reeled out the association’s demand during their meeting with President Bola Tinubu, in Abuja, where they pledged their 100 per cent support to the removal of petrol subsidy.

Akpani, in her speech shared with THISDAY, applauded Tinubu’s statement on the need to harmonise to a single foreign exchange rate, explaining that that was critical as it would eliminate arbitrage and provide a level playing field in the downstream industry in particular and the Nigerian economy at large.

She added that the move would also ensure the highest quality of product supply at the best prices.

Akpani said: “Our further humble request to the president are as follows: that all dues and levies to government agencies particularly the NPA Plc and NIMASA be reduced to the barest minimum and payable in naira. This will drastically reduce the pressure on our foreign exchange rate, reserve and keep in check the pump price of petrol.

“That all charges and taxes imposed by the regulator, NMDPRA as stipulated in the Petroleum Industry Act (PIA) 2021 be suspended until we achieve market stability”.

She also called for the scrapping of the 2.1 per cent security deposit requested by Nigerian National Petroleum Company Limited (NNPC) for all purchases as they never overload marketers.

The DAPPMAN chairman also advocated the revision of the clause in the PIA 2021, which restricts importation to only companies with active local refining licences or proven track records of international crude oil and petroleum products trading.

“In conclusion, we would add that stability in the petroleum industry will ultimately lead to the much-needed energy transition. We anticipate less dependence on fossil fuels which will result in more investment in gas and electricity as alternative sources of energy,” she added.

The chairman expressed her members’ unwavering support for the Tinubu administration, stating that their confidence stemmed from his clear credentials of exceptional, visionary and self-less service in both private and public sectors.

Akpani said the association shall intensify public enlightenment and ensure that their costs were most efficiently managed to deliver value in competitive pump prices.

She maintained: “In furtherance of this contribution, we volunteer to be part of the government’s team that will work on the interventions. On our part, we pledge to ensure a healthy and robust petroleum industry ensuring adequate supply of petroleum products at highly competitive prices.

“Nigerians will not have to suffer in petrol queues any longer. Our years of experience in the trade and distribution of petroleum products will ensure efficiency in product sourcing and delivery. The forces of demand and supply will naturally promote competition and efficiency and prevent price gouging.

“Deregulation will attract further investments in infrastructure and the employment of teeming Nigerian youths.”

However, to achieve a steady and strong downstream industry, she stressed that it was pertinent that full support of government was assured.