Connect with us

News

FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

Published

on

FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

By: Victor Emejuiwe

No sane government should watch its citizens suffer untold hardship and live in poverty. The primary responsibility of government is to protect the life’s and to secure the welfare of the people. President Ahmed Bola Tinubu spontaneously announced the removal of fuel subsidy on the day of its inauguration without considering the attendant consequences of such a decision. In fairness to the removal, the amount of money claimed to be payment of subsidy in Nigeria was quite humongous from N300 billion during the Good Luck Jonathan administration in 2012, to N2.7 trillion in 2022. However, beyond the doubt as to the authenticity of the real value paid on subsidy, the secrecy and corruption associated with the entire subsidy regime was very un-palatable. It was as a result of this, that many Nigerians canvassed for the removal of subsidy. Nevertheless, there are some other school of thought who believes that the government was not sincere on its own part due to the lack of transparency and accountability in petrol consumption and subsidy payment. Also, even where several reports indicting subsidy saboteurs were released, the federal government did nothing to investigate and prosecute those who were accused of corruptly enriching themselves from the subsidy payments. Therefore, the payment of subsidy on its own was not the problem but the willingness of government to come clean with its transaction on subsidy payment and muster the political will to pervert corruption amongst the stakeholders was the major problem. The view on re-introduction of subsidy becomes necessary given the fact that payment of subsidy is a common global practice by governments all over the world. It is taken to ameliorate hardship faced by majority of citizens in the purchase of very expensive commodities. In this case, Nigeria being a mono-economy driven by sales of crude oil, has made the price of every other commodities reflective in the rise or fall in the price of crude oil. The subsidy regime cushioned a lot of hardship amongst Nigerian in the past and with its removal today, Nigerians have not been able to recover from the effect, as we can witness the continuous increase in the prices of all commodities in Nigeria. Most workers do not report to work on a daily basis, some business closed shops and the general standard of living has reduced. Couple with this fact, is government inactiveness in controlling the hike in the prices of locally produced commodities. The lack of a price stabilization and mechanization control which was hitherto implemented in the 70’s have made it possible for middle men to determine the prices of commodities in the market. The practice of the middle men is to acquire these goods from the dealers and hoard them so as to create scarcity and speculate a market price before they sell, with wide profit margin. If government enforce the price control Act as ordered recently by the federal high court on goods and commodities that are locally produced in Nigeria, the hoarders and speculators would run out of business and food items and other commodities would be available at the normal rate. The lack of a price control mechanism is what led to the failure of most government policies on agriculture. It is so unfortunate that the past government of President Muhammed Buhari, made efforts to encourage local production of food commodities such as rice and even provided subsidies to farmers to embark on local rice production, but instead of having the price of rice reduced, it rather led to more than 200 percent increase in the price of rice. Rice which was sold for N9600 before the ban on imported rice, skyrocket to N19,800, at a point, it rose to N36,000 and the government could not do anything to stop the hike. Under this present administration, a bag of rice sells for N77,000. It is an anomaly for government to provide incentives to local producers of commodities and at the same time, do not have control of the market price.
In light of the above, in the interim, the Federal Government should re-introduce subsidy on petrol and diesel under a more transparent regime and deal with saboteurs who divert the products to other countries and in the long run, the Federal government should get our refineries working at optimum capacity so that any attempt to remove subsidy on petrol and diesel will not have much impact on the price on petrol. Also, a list of commodities and items produced locally should be established and the market price should be determined under a price control, stabilization and mechanization regime. The government should enforce the laws and policy on price control. Finally, for resource mobilization, the government should stop oil theft so that more resources can be generated from crude oil and this would help us pay for the subsidy on petrol and also pay for the functionality of our refineries.

*Victor Emejuiwe
Monitoring and Evaluation/Strategic Communication Manager
Centre for Social Justice.
Abuja
08068262366

FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Zulum Reassures Borno Residents as Insecurity Resurges, Vows Decisive Action Against Insurgents

Published

on

Zulum Reassures Borno Residents as Insecurity Resurges, Vows Decisive Action Against Insurgents

By: Michael Mike

Governor of Borno State, Babagana Umara Zulum, has reassured residents that authorities remain firmly in control despite a recent resurgence of insecurity in parts of the state, pledging a robust response to defeat insurgent elements attempting to destabilize communities.

In a statewide broadcast on Thursday, the governor acknowledged growing concerns following renewed attacks in some areas but insisted that the security situation remains manageable.

Zulum said the recent spike in attacks was largely a result of intensified military offensives that have dislodged insurgents from their hideouts, forcing them to disperse and attempt infiltration into local communities.

According to him, security agencies are already implementing coordinated strategies to counter the renewed threats and ensure that the insurgents do not regain a foothold in the state.

“The overall security environment, while tested, remains under control, and we are doing everything possible to protect lives and property,” he said.

The governor noted that although significant progress had been made over the past seven years in restoring stability and rebuilding communities affected by the insurgency, authorities have always remained aware that the threat was not entirely over.

Zulum stressed that the fight against insurgency requires collective responsibility, urging residents to strengthen cooperation with security agencies by providing timely intelligence and reporting suspicious activities.

He warned individuals who aid insurgents through information sharing, shelter, or logistics that the government would no longer tolerate such actions.

“Those who collaborate with these criminals are enemies of the state and will face the full weight of the law,” he said.

The governor commended the Nigerian Armed Forces and other security agencies for their sacrifices and dedication in defending the state, while also paying tribute to soldiers and civilian volunteers who have lost their lives in the ongoing conflict.

He also expressed appreciation to President Bola Ahmed Tinubu for approving funding to support operations of the Multinational Joint Task Force and other military campaigns against insurgents across the country.

Zulum further thanked Vice President Kashim Shettima for representing the president during a sympathy visit to the state following recent security incidents.

The governor called on political actors in the state to avoid exploiting the security situation for political advantage, particularly as the political season approaches.

He urged aspirants and their supporters to prioritise peace and stability over personal ambitions, warning that political divisions could undermine the fragile gains made in restoring security.

“As we look to the future and choose a new leader for our state, let us pray for a worthy successor,” he said.

Zulum also appealed to residents to remain vigilant during the final days of Ramadan and the upcoming Eid celebrations, advising citizens to observe their prayers within their communities and promptly report suspicious movements to security authorities.

He reaffirmed his administration’s commitment to preventing insurgents from regaining control of the state.

“Borno shall not fall into the hands of insurgents,” he declared.

Zulum Reassures Borno Residents as Insecurity Resurges, Vows Decisive Action Against Insurgents

Continue Reading

News

ASHLEE MOMOH FOUNDATION HONOURS WIDOWS OF FALLEN HEROES

Published

on

ASHLEE MOMOH FOUNDATION HONOURS WIDOWS OF FALLEN HEROES

Comrade Philip Ikodor

The Ashlee Momoh Foundation (AMF), a non-profit organization dedicated to supporting the families of fallen military officers, has called on Nigerians to rally behind the widows of our heroes who made the ultimate sacrifice for the nation’s defence and sovereignty.

In a heartfelt statement during the maiden edition of the Foundation’s formal outreach, Princess Ashlee Omonegho Momoh, Founder and CEO of AMF, expressed the organization’s commitment to supporting the widows and their children. “We recognize that the peace and security we enjoy as a nation were bought at a price paid by your households, and for that, we owe you more than just a debt of gratitude; we owe you our unwavering support,” she said.

The Foundation, which was established in 2016, has been working tirelessly to support the families of fallen military officers. Princess Ashlee noted that the organization’s efforts are driven by passion and resilience, and that they are committed to honouring the sacrifice of our fallen heroes by supporting their families.

“We are not just a foundation and its beneficiaries; we are a family,” Princess Ashlee emphasized. “Today, I am incredibly proud that AMF is officially registered and powered by an extraordinary team that shares our vision and passion.”

The event featured a keynote address by Dr. Iwowarri Berian James, CEO of GoldenRays Energy Health Services Ltd, who spoke on the topic “Resolving Loss Trauma for Personal Freedom”. Dr. Iwowarri emphasized the importance of incorporating post-traumatic stress disorder (PTSD) management as a basis for stabilizing the widows and their children.

The Ashlee Momoh Foundation’s outreach was marked by the presentation of food items, clothing, and cash gifts to the widows. The event was a celebration of the resilience and strength of the widows and their families, and a testament to the Foundation’s commitment to supporting them.

The Foundation has urged Nigerians to join them in supporting the widows of our fallen heroes, and to engage with AMF to share their needs and receive support.

ASHLEE MOMOH FOUNDATION HONOURS WIDOWS OF FALLEN HEROES

Continue Reading

News

Environmental Activist Warns Against ‘Junk Food Culture’, Calls for Decolonisation of Africa’s Food Systems

Published

on

Environmental Activist Warns Against ‘Junk Food Culture’, Calls for Decolonisation of Africa’s Food Systems

By: Michael Mike

Environmental activist Nnimmo Bassey has warned that the growing dominance of junk food, genetically modified crops and global market forces is undermining Africa’s food culture and deepening the politics of hunger.

Bassey made the remarks on Thursday during the Sustain-Ability Academy session on Food, Power and the Politics of Hunger, hosted by the Health of Mother Earth Foundation in collaboration with the University of Port Harcourt.

He stressed that food occupies a central place in cultural identity and social life, noting that across Nigeria and other societies, food traditions reflect the diversity and history of different communities.

According to him, food goes beyond satisfying hunger and serves as a powerful symbol of acceptance, celebration and communal belonging.

“Food unites people and families and marks one’s acceptance in a home, family or community,” he said.

Bassey traced the evolution of food systems in Nigeria, noting that cross-cultural exchanges, commerce and colonial influence had spread many local and foreign cuisines across the country and the world.

However, he warned that the increasing global spread of fast foods and processed diets was fostering what he described as a “junk culture,” driven largely by the modern obsession with instant gratification.

He criticised the growing popularity of fast-food outlets, saying their flashy environments, loud music and entertainment distractions encourage people to consume highly processed meals containing harmful additives without reflection.

The activist also expressed concern about political leaders publicly promoting junk food and sugary drinks, arguing that such behaviour sends the wrong signal and normalises unhealthy food habits.

Beyond fast food, Bassey raised alarm over the growing presence of genetically modified crops in Nigeria’s agricultural system, describing them as “Frankenstein foods” introduced through global market pressure.

He argued that many genetically engineered crops are designed to tolerate chemical pesticides or produce insecticides, raising questions about long-term health and environmental implications.

According to him, food systems have increasingly become a geopolitical arena where powerful economic interests shape what people grow and eat.

“Poverty, wars, debt and cultural manipulation create pathways for food colonialism to take root,” he said, warning that global control of food systems could weaken local agriculture and threaten indigenous food heritage.

Bassey called for the “decolonisation” of Africa’s food systems through the preservation of indigenous crops, protection of seed-sharing traditions and renewed support for smallholder farmers.

He also urged policymakers to confront the deeper causes of hunger on the continent, noting that food insecurity is not simply the result of low production.

In Nigeria, he observed, a significant portion of food produced is lost to waste, while structural issues such as weak markets, global trade pressures and poverty continue to undermine local farmers.

Bassey emphasised that governments must critically examine who benefits from hunger and ensure that food policies prioritise fairness, justice and environmental sustainability rather than corporate profit.

The environmentalist urged stakeholders to rebuild resilient food systems that protect cultural heritage, strengthen local farming communities and guarantee food security for future generations.

Environmental Activist Warns Against ‘Junk Food Culture’, Calls for Decolonisation of Africa’s Food Systems

Continue Reading

Trending

Verified by MonsterInsights