Nigerian government highlights subsidy reallocation policies

Nigerian government highlights subsidy reallocation policies
Hauwa Noroh Ali, Abuja and Mabel Kanu, Lagos

The Nigerian government has reassured Nigerians of clear and measurable benefits from the ongoing deregulation of the downstream sector of the petroleum industry in the form of focused, timely and well thought out programmes.

It said that the Subsidy Reinvestment and Empowerment Programme (SURE) under which the proceeds from the removed subsidy would be reallocated will also ensure the implementation of short term social welfare programmes to alleviate the impact of subsidy removal on Nigerians.

The programmes will include mass transit, public works including training in artisanship for unskilled youth and social services to reduce high maternal and infant mortality rates. The projects will be funded from the Federal government’s portion of the savings from fuel subsidies which comes to an estimated 478 billion Naira in 2012.

The Minister of Finance, Dr Ngozi Okonjo-Iweala, stated this during a town hall meeting with staff of the ministry convened to discuss deregulation and the removal of petroleum subsidies.

Other projects include the construction, completion and rehabilitation of rail, refineries, key federal highways, hydro stations, information technology and water.

Subsidy removal

The Minister explained that subsidy removal was not an accurate description as the government intends to reallocate the funds into areas that would have the most impact on Nigerians and the future generations.

While Acknowledging the harsh impact of the removal of subsidy on Nigerians especially on food and transport costs as well as school fees, she pointed out that the government feels the pain of Nigerians but sincerely believes that it was in the best interest of the country to take the decision.

Palliative measure

She said the plan to introduce 1,600 buses into the country’s transportation sector as well as other measures being taken on mass transit were designed to ameliorate the impact in the short term, while assuring Nigerians that the current high prices will not endure.

She said that the appointment of the Christopher Kolade- led Committee of eminent Nigerians to oversee the projects under the SURE programme was meant to boost public confidence in the process and assure Nigerians that “this will not be business as usual.”

She pointed out that she decided to speak to the staff of the ministry because the ministry is a front line one and “charity should begin at home”. The minister also fielded very frank questions on aspects of the subsidy reallocation policy.

Staff of the ministry who asked questions at the forum emphasized that the effects of subsidy removal are negatively impacting on the masses and urged the government to look into ways of reducing the suffering of ordinary Nigerians.

Some expressed doubt that government will keep its promises, citing the previous governments who failed to do what they promised.

Responding the minister said: “We feel your pain. We are human beings like you. That is why this must succeed. The suffering of Nigerians will not be in vain.”

Meanwhile, mixed reactions have continued to trail the removal of fuel subsidy by the Nigerian government.

Some Nigerians have condemned the development and its timing saying that palliative measures should have been put in place and other issues tackled before the fuel subsidy removal.

Others declared their supports on the basis that the steps taken by the government would curb corruption that has existed in the downstream sector stressing that the removal would move the nation forward in the long run.

The Minister of National Planning, Dr Shamsudeen Usman and chairman senate committee on Rules and Business, Senator Ita Enang pointed out that the gains of the removal of fuel subsidy would allow the government access to more funds for infrastructural development.

Williams/Cokey