Nigerians warn against fuel subsidy removal

Posted by admin Headlines, Oil Politics Thursday, October 6th, 2011

Purported move by the Federal Government to remove fuel subsidy has come under virulent criticisms from prominent Nigerians who told government not to try it. Condemning the plan, former Governor of old Kadiuna State, Alhaji Balarabe Musa said the decision would aggravate the poverty in the land.

His view was coming even as the former Lagos State Commissioner of Police, Abubakar Tsav, founder, Oodua Peoples Congress (OPC), Dr. Frederick Faseun, and human rights activist and President, West African Bar Association, Mr Femi Falana said the planned removal was unwise and would compound the hardship being faced by the common man.

Meanwhile, oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Ptroleum and Gas Workers (NUPENG) held a moderate view, saying they are not completely opposed to government’s plan. Rather, they tasked government to make public how it would spend the money saved from subsidy removal.

The Federal Government, on Tuesday disclosed that the subsidy removal may likely feature in the N4.8 trn budget estimate President Goodluck Jonathan may present to a joint sitting of the National Assembly in November. If the plan eventually sails through, it would push fuel prices from the current N65 to between N120 and N150 per litre. Balarabe told Daily Sun on telephone in Kaduna that:: “Removing fuel subsidy at this time will increase the level of poverty and hunger currently being experienced by the masses in the country. It will further impoverish about 90 per cent of the Nigerian people, while it will enrich leaders in the corridor of power.”

“It is a very serious issue which is coming at the time President Goodluck Jonathan admitted that institutions of government have collapsed. It will further worsen the condition of civil servants who are being paid slave wage as salary; it is definitely going to make the whole situation of workers worst, he stated.” Tsav, while speaking with Daily Sun yesterday explained that the fuel subsidy removal would translate to hike in price of fuel which would have a spill over effects on transportation fare and the prices of food stuffs.

He enjoined government to rather think of making the nation’s refineries functional and productive instead of planning to remove fuel subsidy. While urging government to look critically into how to sustain the current subsidy, the socio critic maintained that the subsidy when removed will affect the prices of everything and make the new minimum wage useless. The oil workers who spoke with Daily Sun in separate telephone chart in Abuja through their national leadership expressed concern about government’s hurried plans to announce the removal after it was yet to to consult with the unions, PENGASSAN’s Babatunde Ogun, “we have given government our position on the whole matter. We had asked government to carry everyone along in the move to remove subsidy on fuel.

“When you talked about removing subsidy, our concern is not just about price. The price can go up and down, but what i know is that that thing is being controlled by the international fundamental markets.“But our paramount concerns as labour unions is that what is meant for Nigerians should be given to them. What we are saying is that what is meant for us is judiciously used.. We want them to share the money to all other sectors and to fix infrastructures.

On his part, NUPENG National President, Comrade Achesa Igwe stated that NUPENG’s position has been that, the issue of deregulation of the downstream sector is the one that affects every Nigerian and should be handled with serious care.
He however, said the union’s position on the matter would be made known after its National Executive Council meeting next week.
Balarabe’s view was corroborated by Kaduna-based lawyer and member Electoral Reform Committee, Festus Okoye who said: “Although, I don’t have much to say because I am still studying the situation, but if the removal is true, then President Jonathan is looking for trouble because the poor in the society will be most hit by the removal of the fuel subsidy, and they will react violently, I can assure you.”

Also speaking, Mohammed Musa Soba, Kaduna State Chairman, Action Congress of Nigeria (ACN) stated:“I want to say that it is very unfair; the government is not sincere about it. And I want to add that the common man will not benefit anything from it. It is never meant for development because the life of a common man will be worst when the subsidy is removed. The people in government want to make abundant money to steal and enrich themselves.”

The OPC founder in his reaction told Daily Sun on telephone, saying, “It is very unfortunate that a country that is producing oil is making another effort to remove subsidy on it so that common men can now pay through their nose.” He advised the FG to consider the consequences; saying without removing subsidy price of Kerosene has been skyrocketing, asking that if government now removes it what would be the lot of common men? His words, “Does the FG have no responsibility to common people at all? I feel bad that the FG is telling the whole world that it is government for the rich alone and have no consideration for the poor.

According to him, many state governments are finding it difficult to pay the N18,000 minimum wage and FG now wants people whose salary is less than N18,000 to come and face additional hardship. Falana on his part said there was nothing like subsidy at all. Saying what the FG is trying to do is the highest form of irresponsibility on its part. The human right crusader disclosed that for the past 13years, there have been governments in power in Nigeria which cannot develop new refineries or repair the old ones.
He maintained that what the government has been doing so far is wasting a lot of money on refining our oil abroad,. And subsidizing their contractor friends who import refined fuel into the country

The legal luminary advised the FG to establish five additional refineries, not only to serve to domestic needs but to be able to serve foreign needs to make money for the government. He condemned the idea of taking crude oil to Europe to be refined when there are neighbouring West African countries that already have refineries that have capacity more their local needs. Falana disclosed that both the Niger Republic and Chad already have refineries which will be commissioned soon because they are taking advantage of our failure to have working refinery to build good ones in their countries.

Late General Sanni Abacha, according to Falana built a refinery in Sierra Leone which Chief Olusegun Obasanjo allegedly sold at a take away price during his administration. He lamented that Obasanjo’s Administration gave license to many of his men to operate oil business in the name of asking them to establish refineries which they never did. Eminent Deltans, including Mr. Oghenejabor Ikimi, National Co-ordinator, Forum for Justice and Human Rights Defense who reacted to the decision yesterday described it as suicidal, devilish and insensitive. He told Daily SUN in Warri that the plan is not the solution to our economic woes adding that the status-quo should remain because it is the only palliative which Nigerians benefit from.

“The masses will suffer if a liter of fuel is being sold for N80 to N100. Our leaders should be sensitive over this issue and ensure that subsidy is not removed”, stressed Barrister Ikimi. According to him some State Governors earns about N1billion and above as security vote, explaining that if all the security vote is put together, is enough to make Nigerians feel better.“Removal of security vote will go a long way in assisting Nigerians because the wage bill of members of the National Assembly and Governors (Security Vote) can transform the wellbeing of Nigerians”, remarked the Human Rights activist.

But, the National Co-ordinator, Centre for Peace and Environmental Justice, Comrade Sheriff Mulade condemned government intention to remove fuel subsidy saying it is unfair, barbaric and senseless. From Bayelsa State came a report that Ijaw leader and President of the Conference of Ethnic Nationalities of the Niger Delta, Prof Kimse Okoko has cautioned the Federal Government over its plan to remove the petroleum subsidy.

Speaking in an interview, Okoko who dismissed explanations from government officials on petroleum subsidy lamented that while government has announced plans to remove the subsidy, it has remain mute on the policies it would initiate to cushion the effects of the removal on ordinary Nigerians. According to him the removal of petroleum subsidy would affect the whole of Nigerian economy with far reaching implication for Nigerians who are already suffering.

His words: “My position on this is well known. There has never been anything like fuel subsidy. Government official explanations on what they mean by subsidy remains unconvincing.. If they insist that they would go ahead, we want to know the palliatives they are putting in place to cushion the effects of the removal like it is being done in other parts of the country. We have not heard them say anything, they have just announced that they want to remove fuel subsidy but mute on what policies and programmes they would introduce so that Nigerians would not suffer”

The President of the Ijaw Youth Council (IYC) Maibiye Kuromiena in his reaction said the removal of fuel subsidy is not the issue but restructuring of the economy and polity of the country. He maintained that unless the country is restructured removal of fuel subsidy and other policies would always be frustrated by the political hawks that had held the country hostage.

Also an oil magnate, told Chief Julius Biodun Arojojoye, told Daily Sun in Lokoja, a “ in an ideal situation and in a sane society, the removal of oil subsidy is to better the lots of the citizens, but in the case of Nigeria the reverse is always the case
“We are witnesses to several removals by past administration andthe common man on the street always suffer the consequences will advise the Federal Government to shelve the idea, even if this is the only thing the common man can enjoy in this administration” he added

A Lokoja-based Rights activist Idris Miliki also concurred with Arojojoye, saying if the Jonathan led administration was seriously concerned about the plights of the masses, he would have realized that this is not the time to removal subsidy on oil.
The removal of petroleum subsidy by January will have a very serious security implication on the country; former military administrator of Ogun state, Col. Inuwa Bawa has said. Speaking to Daily Sun on the proposed plan in Jos, he said the Federal Government need to think of the security y implication on the polity which is very unstable at this moment before embarking on such venture. He said’ positive policies like increment in the salaries of workers have had negative implication on the economy in the past not to talk of a negative move which will invariably push up transport fare, increase prices of foodstuff and add to the hardship of the masses.

Waving off the decision to divert part of the money to be saved from the removal towards providing safety net for the poor, he said Nigerians can no longer be deceived by any government because Nigerians seen such promises never fulfilled. Col Bawa reiterated that petroleum prices was increased about five time during Chief Obasanjo’s regime without it having anuy positive effect on the people of the country. According to him, the only time a positive thing came out of the removal of petroleum subsidy was during Abacha when Petroleum Trust Fund (PTF) was initiated and used in the development of road network. “If government is sincere about it, why did it scrap PTF? He asked. He advised government to shelve the proposal until there is stability in the polity.
In his reaction yesterday, former governor of Anambra State, Dr Chuemeka Ezeife, warned that the step would triple the cost of running businesses in the country.

Ezeife pointed out that since Nigeria refines some amount of crude oil, she should use what is derived from its refineries to unify the source of supply and equally allocate crude to that source of supply.“As a member of OPEC, we do not have the opportunity to export everything we produce, so the opportunity cost of subsidy cannot be there because we have a limit to what we export. If we insist on removing fuel subsidy, the cost of doing business in Nigeria jumps up, this is already excruciatingly high and stifling.“I am not really concerned with the issue of removing or not removing subsidy on fuel. My problem is how to supply fuel to the domestic economy. One of the solutions to the problem at hand is to carve out a body from NNPC or even PPMC, that will manage the domestic supply of fuel in Nigeria, rather than live it into the hands of some petroleum mafia, who are stealing Nigeria dry”, he said.

“I am not really concerned with the issue of removing or not removing subsidy on fuel. My problem is how to supply fuel to the domestic economy. One of the solutions to the problem at hand is to carve out a body from NNPC or even PPMC, that will manage the domestic supply of fuel in Nigeria, rather than live it into the hands of some petroleum mafia, who are stealing Nigeria dry”, he said.
In Sokoto, the Chairman of Academic Staff Union of University (ASUU) Usman Danfodio University, Sokoto (UDUS) Dr. Lawali Abubakar had described the federal government move on fuel subsidy as a ‘crime against humanity’.
According to the ASUU chairman “This is a crime against humankind, because this pump price they are trying to tamper with would have a negative way on the common man. The decision shows the heartless mind of our leaders in this country, they have fouled electorates during the just concluded general elections.
Lawali however prayed God to save the country from the jar of bad leadership it had found herself adding that “People have been denied of enjoy a new life in a new regime has been promised by President Jonathan.”

Also speaking, the state chairman of the Nigeria Bar
Association (NBA) Barrister Joseph Ochidi queried the audacity of the federal government to remove the fuel subsidy saying “all the billions Naira federal government has been savings could not be accounted for, that is the major problem with us because there is no guarantee that this fuel subsidy money would be judiciously use for the overall benefits.”
His words; “The decision of the federal government is uncalled for at this moment because it would not add any value to the already poor standard of living of the common man in this country. In fact, policy taken is our major problem in this country.”
Reacting to the plan yesterday in Osogbo Osun State Chairman of Labour Party (LP),Mr.Rufus Oyatoro,Nigeria Labour Congress(NLC),Alhaji Saka Adesiyan,Trade Union Congress(TUC) ,Mr.Dele Adetunji and Coordinator,Democratic Socialist Movement (DSM),Barister Alfred Adegoke warned against such move.

They called on the federal government to urgently put an end to the refinerying of crude oil abroad and build refieries,noting that this would save the nation. To Mr.Wale Oyeniyi,the Principal Assistant Secretary- General,Nigerian Union of Teachers(NUT),”the removal would wreck this country.It’ll add more to people’s burden.President goodluck Jonathan will fail woefully if he goes ahead with the plan.”
“It is a ploy to increase fuel price.It is sad that Jonathan is thinking in that line.It is a self design attempt for him to fail.Nigerians will fight him to a standstill,”Adegoke said. A student union leADER,,Ibraheem Mumeen observed that subsidy removal would worsen economic problem of the poor people,appealing to government to revamp the economy first.

Kaduna-based human rights activist, Comrade Shehu Sani has described the move as a declaration of war against the masses of the country. Comrade Sani who spoke with Daily Sun in Kaduna yesterday stated categorically that the planned removal of the fuel subsidy was nothing but a height betrayal of trust by the government. According to him, the masses of the country had voted the government with trust and believe that their interest would remain upper most before the government.
He said the government which will definitely jack-up the price of petroleum products by 100 per cent or more will definitely overheat the polity, as it done merely to please the business class of the country at the expense of the poor masses.

“Let me tell you, this is height of betrayal of public trust by the government. And it will do nothing to the country than to heat up the polity. It is dangerous and damaging, especially to the masses who are always at the receiving end”, he said. In a related development, the Chairman of the Nigeria Union of Journalist in Kaduna State, Alhaji Yusuf Idris called on the National Assembly to reject the proposal, if truly they are representing the people of Nigeria, since it is obvious that Nigerians generally oppose the action. He maintained that if the National Assembly thinks like the executive arm of government rather that the people they represent on the issue at hand, then, “it will be doom for the country”.

Mixed reactions have since trailed the planned removal with some people describing it as most unfortunate.
A cross section of notable individuals who spoke to Daily Sun on the contentious issue said government should not contemplate to do anything that would tend to pauperize the poor citizens of the country further.
They contended that the plan if carried out would not only increase the sufferings of the people, but would also make crime rate to be on the high side since many people would hardly make ends meet as a result of skyrocketing of goods and services.
Prince Nnanna Ukaegbu, chairman, Abia state chapter of All Progressive Grand Alliance (APGA) said it was very unfortunate that the federal government would contemplate removal of the subsidy at this time the citizenry were under severe economic hardship.
“This is the only better thing the people of this country enjoy from their government. This is not the time for government to do that. Rather than remove subsidy, they should first of all turn around PHCN, fix the roads and provide infrastructure so that the people would no longer depend much on petroleum products.

This is government’s reaction to the minimum wage issue, it appears government is giving with one hand and taking from the other hand and I think workers and indeed all Nigerians shouldn’t allow this to happen”, he said. Moreover, Cross River State Chapter of Action Congress of Nigeria, ACN, has stated in no equivocal terms that there is no basis to remove it because it is an attempt by the ruling PDP to finally crumble Nigeria. The party maintained that it is the height of insensitivity for President Good Luck Jonathan to announce the final removal of oil subsidy when even the past military administrations didn’t do it due to public opinion, describing such moves as an indication that the ruling PDP government has no bearing with the people.

Hon. Cletus Obun, the State Chairman of the party, who stated this in an exclusive interview with DAILY SUN while reacting to the plans by federal government to remove the subsidy in 2012 fiscal year, said “it is the height height of insensitivity that even the worst military regime never went ahead to remove subsidy through popular opinion, Jonathan is going ahead coming from the South-South and against the backdrop of how he emerged during 2011 elections.” Obun, the former Lawmaker at the State House of assembly, contended that the only thing citizens of this country have to show even for government even for presence is oil subsidy, stressing that the so called oil subsidy has been proven over the years not exist except in the heads of those proposing it.

Former National Deputy Legal Adviser to the All Nigerian Peoples Party (ANPP), Aminu Magari, has slammed the plan describing as a gimmick. Rather, the second republic legal adviser to the defunct Peoples Redemption (PRP) government of Mallam Balarabe Musa, of Kaduna State, pleaded with the presidency to give average Nigerians a reprieve and enthrone greater fuel subsidy.
Hear him: “I call it (the removal of subsidy) a gimmick. You are saying that you will take away the subsidy so that you can put it in the budget. Who is the budget going to serve? The same people! And these people need the subsidy not your cosmetic projects that will not benefit the common man.

“When you remove the subsidy, transport fares will increase, school fees will raise and the cost of virtually will increase. Even the bread that you buy for about N100 will rise to over N200. So, how can a common man survive?”
Contrary to the expectation of the government, Maigari averred, the promise to plough the subsidy removed from fuel would definitely not cater for the cheap food, affordable qualitative education and health care among others that are the primary needs of most Nigerians.

The erstwhile university don charged the federal government to rightly determine the needs and priorities of Nigerians before promising the nation skyscrapers and projects that would add little or no value to the lives of the people.

-Sunwp_posts

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Posted by admin on Oct 6 2011. Filed under Headlines, Oil Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry