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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA
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
Kidnapped victims rescued, terrorists neutralised in Sokoto and Zamfara
By: Zagazola Makama
Troops of Operation FANSAN YANMA (OPFY) have rescued eight kidnapped victims and neutralised one terrorist in separate operations in Zamfara and Sokoto States.
Sources told Zagazola Makama that the troops intercepted terrorists attempting to move kidnapped victims from Barkin Daji Forest to Bagega Forest in Bukkuyum Local Government Area (LGA).
It said the troops laid an ambush at a known crossing point between Tungar Miragumi and Zugu village, where contact was made and the terrorists engaged in a gun duel, forcing them to abandon their captives.
“All eight victims were successfully rescued and efforts are ongoing to reunite them with their families,” said the sources.
Kidnapped victims rescued, terrorists neutralised in Sokoto and Zamfara
FG’s student loan scheme improving access to higher education -NOA DG
The National Orientation Agency (NOA), on Wednesday, said that the Federal Government’s interest-free loan under the Nigerian Education Loan Fund (NELFUND) is reducing dropout amongst undergraduates in the country.
Mallam Lanre Issa-Onilu, the NOA Director General, stated this in Gombe at a news conference on five thematic areas of the present administration.
The News Agency of Nigeria (NAN) reports that Issa-Onilu spoke through Mr David Akoji, the Director Special Duties, NOA Headquarters, Abuja.
He reiterated the commitment of President Bola Tinubu’s administration to improving access to education at all levels and ensuring that “financial constraints do not prevent young Nigerians from pursuing higher learning.”
Issa-Onilu said NELFUND was established by the Tinubu administration to ensure that no Nigerian who qualified to go for tertiary education was prevented from doing so, as a result of inability to pay school fees.
According to him, funding which used to be the biggest challenge in accessing tertiary education is no longer a threat to undergraduates and students seeking higher education.
The director general said the administration of President Tinubu had disbursed N59 billion to over 600,000 students that have applied for NELFUND Student Loan.
The director general assured that the era of students leaving tertiary institutions without completing their degree as a result of financial constraints was over.
He stated that the initiative showed that the Tinubu-led administration was committed to improving the wellbeing and welfare of Nigerians by empowering young Nigerians with education and skills.
Issa-Onilu urged students in Gombe State who have financial challenges to embrace the initiative to ease the burden, stressing that the loan scheme “is available to all qualified Nigerians who are schooling in public tertiary institutions in Nigeria.”
Speaking on the thematic areas Issa-Onilu said they include; Government Policies, Programmes and Activities, the Nigerian Identity Project and National Symbols, and flood mitigation.
He cited others as National Security Awareness towards achieving improved security consciousness in communities and National Values Re-orientation for Students of Secondary Schools and Tertiary Institutions against sign-out extreme practices.
He also announced plans by the federal government to support 150, 000 youths across Nigeria under the National Youth Investment Fund (NYIF), adding that N110 billion had been dedicated to implement the initiative.
The director general further expressed the commitment of Tinubu’s administration to impacting positively on the wellbeing of all Nigerians especially the poor and vulnerable households.
On government programmes, Issa-Onilu hinted that over 2 million households enrolled into the Social Safety Nets Expansion, had benefitted from the Conditional Cash Transfer.
He said: “Trader Moni and Farmer Moni were introduced through the Government Enterprise and Empowerment Programme (GEEP). These are interest-free loans of up to a maximum of N100,000 for trader moni, while, farmer moni up to N300,000.”
FG’s student loan scheme improving access to higher education -NOA DG
Security forces neutralise two notorious bandits in Benue clearance operation
By: Zagazola Makama
Security forced have neutralised two suspected notorious bandits during a clearance operation in Ukum Local Government Area of the state.
Sources told Zagazola that the operation followed credible intelligence received on Tuesday at about 1:00 p.m.
The report indicated that a criminal gang led by one Senen Hemen, also known as Orpa, was sighted along the pipeline axis between Gbeji and Igbongom communities in Ukum.
According to the sources, security forces were promptly mobilised to the location, where the gang engaged the operatives in a gun duel.
During the exchange, Hemen and another gang member identified as Mzungweve Ichur, both from Igbongom, were shot dead, while others fled the scene with gunshot injuries.
The sources confirmed that the corpses of the two suspects had been recovered and deposited at a private mortuary in Gbeji, while a manhunt had been launched in the surrounding bushes to track the fleeing accomplices.
The sources assured residents that the operation was part of ongoing efforts to rid Ukum and adjoining areas of violent criminal gangs.
Security forces neutralise two notorious bandits in Benue clearance operation
Kidnapped victims rescued, terrorists neutralised in Sokoto and Zamfara
FG’s student loan scheme improving access to higher education -NOA DG
Security forces neutralise two notorious bandits in Benue clearance operation
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