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

VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace

Published

on

VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace

By: Our Reporter

Following President Bola Ahmed Tinubu’s reaching out to the government and people of Borno State regarding the latest insurgency attack in the State, Vice President Kashim Shettima has assured that the administration of President Bola Ahmed Tinubu will not be cowed by despicable acts of cowardice and a doomed attempt to undermine the collective peace of the nation.

Deploring the attacks, including the abductions in Ngoshe and the coordinated assaults on military formations in Konduga, Marte, Jakana, and Mainok, the Vice President reaffirmed that the administration remains resolute in its duty to protect the lives and properties of all Nigerians.

In a statement on Saturday, Senator Shettima emphasised that the Federal Government is already deploying additional tactical assets and intelligence-driven reinforcements to the affected areas.

“The events of the past few days are a painful reminder of the shadow that persists, but let it be known: we choose light over shadow, and hope over despair. Our difference as a nation is the distance between the ruin of anarchy and the promise of order.

“President Bola Ahmed Tinubu has been briefed and has already directed a swift and total mobilisation of our security architecture. The Federal Government will not tolerate any sanctuary for those who seek to displace our people or occupy an inch of Nigerian soil,” he said.

The Vice President assured that the perpetrators of these beastly crimes would face the full wrath of the law.

He continued: “We are not just fighting a war. We are defending the very soul of our humanity against those who preach a toxic rhetoric of hate, and we will not be cowed by their gory acts.

“Our hearts bleed for the families in and the brave soldiers who paid the supreme price in the line of duty. This administration will not rest until abducted citizens safely reunite with their families.”

VP Shettima commended the resilience of the people and government of Borno State under Governor Babagana Zulum and praised the gallantry of the troops on the frontlines.

“We remain one nation, tied to a common destiny. The sanctity of human life is non-negotiable. This madness will be brought to an end, not with empty words, but with the decisive and overwhelming force of the Nigerian State,” he further assured.

VP Shettima To Insurgents: We Will Not Be Cowed By Attempts To Undermine Our Collective Peace

Continue Reading

News

Two miners killed, five injured in clash at Zamfara mining site

Published

on

Two miners killed, five injured in clash at Zamfara mining site

By: Zagazola Makama

Two miners have been killed and five others injured following a clash at a mining site in Abare area of Bukkuyum Local Government Area of Zamfara.

Police sources said the incident occurred on March 5 at about 8:30 a.m. at a mining site in the community.

The sources said the crisis was triggered when a member of an outlawed vigilance group, locally known as Yan Sakai, allegedly stormed the site and attempted to enforce observance of the ongoing Ramadan fast among Muslim miners.

According to the sources, the suspect, identified simply as Kaura, allegedly arrested some of the miners, accusing them of refusing to observe the fasting period.

He was also said to have imposed compulsory levies on those arrested.

The action was reportedly resisted by some miners who objected to the arrest and the alleged illegal levies.

The suspect was said to have retreated from the site following the resistance but later returned with other members of the outlawed group and attempted to effect further arrests.

This led to a confrontation between the two groups, resulting in panic and tension across the mining site.

During the clash, two miners were killed while five others sustained injuries.

Security forces were immediately deployed to the scene after receiving the report.

The injured victims were taken for medical treatment, while investigations have commenced to identify and apprehend those responsible.

No arrest had been made as of the time of filing the report.

Two miners killed, five injured in clash at Zamfara mining site

Continue Reading

News

Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti

Published

on

Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti

By: Zagazola Makama

Troops of the Nigerian Army have neutralised 45 suspected bandits during a fierce encounter in Danmusa Local Government Area of Katsina State.

Security sources said the operation followed credible intelligence on the movement of bandits suspected to be operating across parts of Katsina and neighbouring Zamfara.

Among those killed during the operation were two top bandit leaders identified as Alti, said to be a nephew and second-in-command to notorious bandit kingpin Adamu Alieru, and another commander known as Damale.

The sources said the confrontation occurred after bandits riding on motorcycles and armed with sophisticated weapons attacked Alhazawa village in Musawa Local Government Area on March 5, rustling cattle from residents.

Community members and some repentant bandits in the area reportedly resisted the attack, killing four of the bandits and recovering the stolen cattle, which were returned to their owners.

However, the bandits were said to have regrouped and returned in larger numbers on March 6, allegedly to launch a reprisal attack.

While moving toward Musawa through Maidabino A Ward, the bandits encountered troops deployed at the Forward Operating Base (FOB) in Dan Ali, Danmusa LGA.

This led to a fierce gun battle during which troops overpowered the criminals and neutralised 45 of them.

However, the operation recorded casualties on the side of the military as three soldiers were killed during the encounter.

Further checks indicated that Alti had recently assumed a more active operational role within the bandit network after the death of his brother, Kachalla Dan Isihu, who was previously killed by security forces during counter-banditry operations.

Alti was said to have coordinated several violent attacks across communities, particularly along the Danjibga axis in Tsafe Local Government Area of Zamfara.

Security sources said troops had intensified operations in the area to track down other fleeing bandits and dismantle their networks.

Army troops neutralise 45 bandits in Katsina, including top bandit leader Kachallah Alti

Continue Reading

Trending

Verified by MonsterInsights