The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) has made it clear that the N100 billion grant it asked President Bola Tinubu for is a loan, not free cash.
To help its members deal with the consequences of the elimination of fuel subsidies, PETROAN recently requested a N100 billion payment from Tinubu.
The merchants said that the award would lessen the possibility of job losses brought on by the elimination of subsidies.
When Tinubu took office in 2023, he eliminated petrol subsidies, which resulted in a significant rise in the price of petroleum goods, particularly petrol and diesel.
According to marketers, when the Nigerian government completely deregulated the downstream industry in October 2024, the average cost of lifting a 33,000 truck increased from N7 million in May 2023 to N30 million.
As indicated by reports, some marketers were consequently fired from the company when they were unable to cover the expenses.
Additionally, it was discovered that certain stores now help pay for the purchase of a single truck of premium motor spirit, which they then distribute to their filling stations.
Billy Gillis-Harry, the president of PETROAN, stated in a document he provided to reporters that 10,000 marketers could shut down their stores if the federal government did not assist them.
He stated, “PETROAN asks President Bola Tinubu for a N100 billion grant to help stop 10,000 marketers’ businesses from closing.”
The proposal stems from the concern that eliminating the fuel subsidy would lead to job losses.
The association wanted the cash to be stored in an energy bank where its members could obtain loans, Gillis-Harry clarified in an interview with reporters, but it wasn’t looking for free money.
“You can see that we are requesting N100 billion from the government today to seed the energy bank.
“We did not demand free money from them. We requested that it be placed in the energy bank and provided to us as a loan with a single-digit interest rate. As a result, the price of petrol will decrease.
“That we’re requesting free money? No! All we’re suggesting is that the government ought to deposit the grant into Nigeria’s energy bank. Create the Nigerian Energy Bank and invest N100 billion as startup funds. Although N100 billion is insignificant, it will alter the company’s content,” he said.
He voiced his worries about the rising bank interest rates.
“We pay between 36% and 40% interest on all of the money we borrow from the bank. With that type of money, you can’t get a better deal. Every product we own has a price tag. It makes a difference if our interest rate is 9%.
“The edge will go to the Nigerian user. Furthermore, the N100 billion will be recycled because it is in the private sector’s possession. In less than three years, the amount will have increased to more than N700 billion,” he added.
