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

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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

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Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

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Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

By: Michael Mike

Borno State Governor, Professor Babagana Zulum, has called for a fundamental overhaul of Nigeria’s security strategy, urging greater adoption of advanced technology and Artificial Intelligence (AI) to address escalating security challenges across the country.

Speaking at the Kogi Security Summit held in Abuja on Tuesday, Zulum warned that conventional security approaches are no longer sufficient to confront increasingly sophisticated criminal networks. He advocated the integration of modern surveillance systems, including drones, biometric tracking technologies, and predictive analytics to detect and prevent attacks before they occur.

“For us to address insecurity, we need to possess modern technological warfare. Technologies such as artificial intelligence and robotics are now being deployed globally to combat crime,” the governor said.

Beyond technological investment, Zulum emphasised the importance of citizen participation in security management, insisting that communities must take greater responsibility in intelligence sharing and local vigilance rather than relying solely on security agencies.

He further stressed that sustainable peace cannot be achieved without addressing the socio-economic drivers of insecurity. According to him, widespread poverty, unemployment, infrastructural decay, and environmental vulnerabilities continue to fuel recruitment into criminal groups.

“While it is critical to purchase equipment such as vehicles, MRAPs, drones and other facilities to confront insecurity, most importantly, without addressing underlying factors such as poverty, road infrastructure, agriculture, among others, insecurity will not end,” Zulum said, urging policymakers to channel part of security funding into development-focused interventions.

He added that “understanding the socio-economic and political dimensions of every crisis is very important. Increasing poverty, climate vulnerabilities, infrastructural deficit, illiteracy, among others, have to be addressed if we want security in our communities.”

Reiterating the link between peace, security, and development, the governor noted that no meaningful progress can be achieved in an atmosphere of instability.

“The security of lives and property is the cardinal objective of any administration. The nexus between peace and security cannot be overemphasised. It is only when there is security that there will be peace; and without peace, there will be no development,” he said.

Governor Zulum was accompanied at the summit by Hon. Engr. Bukar Talba, member representing Marte, Monguno and Nganzai Federal Constituency

Zulum Calls for AI-Driven Security Reform at Kogi Summit, Urges Tackling of Root Causes of Insecurity

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Communal clash at illegal mining site leaves five injured in Zamfara

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Communal clash at illegal mining site leaves five injured in Zamfara

By: Zagazola Makama

A violent clash between residents of Boko and Jaya villages in Zurmi Local Government Area of Zamfara state has left at least five persons injured following a dispute at a stone mining site.

Sources said the incident occurred on April 20 at about 11:00 a.m. at the Kwanza Stone Mining Site, located between the two communities.

According to the sources, the clash began when members of both villages engaged in illegal mining activities at the site, leading to a disagreement that escalated into violence, with both sides allegedly using firearms.

The sources said the injured victims include Sha’aibu Adamu, 30; Shakiru Suleiman, 26; Kasu Boko, 27; Abdullahi Dahiru, 25; and Ibrahim Usman, 25, all from the affected communities.

They added that the exact number of persons killed could not be immediately confirmed at the time of filing the report.

A joint security team comprising troops of Operation FANSAN YANMA. police personnel and community protection guards was swiftly deployed to the area to restore order.

The injured victims were evacuated to the General Hospital in Kaura Namoda for medical treatment.

Security authorities said normalcy had since been restored in the area, while efforts were ongoing to identify and arrest those involved in the violence.

They also confirmed that investigation into the incident had commenced.

Communal clash at illegal mining site leaves five injured in Zamfara

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Security forces foil Kidnapping, flee after alarm in Gombe community

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Security forces foil Kidnapping, flee after alarm in Gombe community

By: Zagazola Makama

Armed men suspected to be kidnappers have attempted to abduct residents in Unguwan Yamma, Amada area of Akko Local Government Area of Gombe state.

Sources said the incident occurred at about 3:20 a.m. when the attackers stormed the residence of one Alhaji Muhammad Abba, who narrowly escaped the attack.

According to the sources, the assailants proceeded to a neighbouring house where they abducted a child after the mother raised alarm.

The sources said the kidnappers, however, abandoned the child and fled the scene following the commotion.

A divisional patrol team, alongside hunters and local vigilantes, was immediately mobilised to the area and is currently on the trail of the suspects.

Police authorities said investigation was ongoing, while efforts had been intensified to apprehend the fleeing attackers and prevent further incidents in the area.

Security forces foil Kidnapping, flee after alarm in Gombe community

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