By Providence Ayanfeoluwa

Following the recent removal of subsidy on Premium Motor Spirit, PMS, otherwise called petrol, which was greeted with mixed reactions, the Institute of Chartered Accountants of Nigeria, ICAN, has recommended an eleven-point action plan to the government.

The Institute, while commending the policy, which it says has addressed market distortions and blocked revenue leakages, however, called for measures to reduce the burden of the on the populace, especially small businesses and vulnerable households.

The Registrar/Chief Executive of ICAN, Prof. Ahmed Kumshe, in a statement, said “stakeholder engagement which creates effective consultation and communication with all relevant stakeholders, is critical for the introduction and implementation of any major policy as it will facilitate buy-in, broad support and ensure ease of implementation”.

Kumshe said that the government needs to introduce credible palliatives to cushion the impact on the most vulnerable population beyond the civil service, adding that there is still the need for full transparency and accountability of all activities within the oil and gas sector.

He stated: “Political office holders should lead by example in making the necessary sacrifice to restore the country back to the path of fiscal buoyancy. The savings from the subsidy removal and subsequent accretion to the federation account should be applied in a manner that will optimise the benefits to the people in view of their sacrifices.

“While market forces are desirable for price recovery, government needs to ensure effective regulation and monitoring to prevent manipulations and market imperfections that may lead to exploitative pricing or price collusion. 

 “The gains which are expected to accrue because of market efficiency should cascade to the people rather than for the enrichment of a few. The relevant government agencies involved in the downstream petroleum industry value-chain should aim to improve their performances not to hinder the effective operation of the sector and minimise financial burdens in the form of levies which can keep prices high”.