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Private sector, governors back fuel subsidy removal
Nigeria’s President Goodluck Jonathan’s bold move to scrap the subsidy on petroleum products received a huge boost at the weekend, with the organized private sector and Nigerian State Governors expressing support for the policy.
In a communiqué issued at the end of the Presidential Retreat in the State House, Abuja, the organized private sector said the petroleum subsidy represented corruption, fraud and a waste of national resources.
Nduka Obaigbena, promoter of THISDAY newspaper, read the communiqué on behalf of the organized private sector.
Accountable for its use
It stated inter alia:
“That the majority of Nigerian citizens do not enjoy the benefit of the current subsidy of petroleum product today. Rather the subsidy itself benefits only a very few people.
“That the financial burden of subsidy is unsustainable and untenable in a nation where critical infrastructure, human and capital development is in dire need of investment."
“We note from the retreat that the federal government of Nigeria has promised to consult widely with the labour organizations, civil societies and other stakeholders to ensure a high level of engagement on the benefit of a deregulated price regime, particularly the impact on the improved livelihood of Nigerians.”
The communiqué was signed by 42 of the 45 members representing the private sector at the retreat.
Those in attendance included billionaire industrialist Aliko Dangote; Managing Director, Nestle Nigeria Plc, Mr. Martin Woolnough; President of the Manufacturers Association of Nigeria (MAN); Mr. Kola Jamodu; Chairman, Diamond Bank, Mr. Pascal Dozie; Chairman, Visafone, Mr. Jim Ovia; Chief Executive Officer, Heirs Holdings, Mr. Tony Elumelu; GMD, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede; MD, Forte Oil, Mr. Femi Otedola; Chairman, Honeywell Group, Dr. Oba Otudeko; MD, NICON, Mr. Jimoh Ibrahim; and MD, Oando Plc, Mr. Wale Tinubu, among others.
Speaking on behalf of Nigerian State Governors, Anambra State Governor. Mr. Peter Obi, who also attended the retreat alongside Governors Liyel Imoke (Cross River) and Admiral Murtala Nyako (Adamawa State), said the governors had always supported withdrawal of the subsidy, adding that funds saved following the withdrawal could be invested in developing critical infrastructure countrywide.
He urged Nigerians to hold government accountable for its use, pointing out taht building of infrastructure will help to create jobs.
Expressed skepticism
While the exact cost of the subsidy varyies (dependsing on who you ask), it is estimated that it costs the Nigerian government more than 900 billion naira annually to subsidize the cost of petroleum products.
Labour unions have however, criticized government's decision on the subsidy. Labour said the masses would suffer dearly if any more subsidy is removed.
Many Nigerians have expressed skepticism about the existence of any more subsidy on petroleum products.
The policy to remove subsidies was first introduced in 1985 during General Ibrahim Babangida's administration, under a Structural Adjustment Programme, which many believe Nigeria was pressued by the Bretton Woods institutions to implement.
NP/Hajia Sani |
