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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
Troops receive rescued kidnap victims, arrest suspected gunrunner in Cross River
By: Zagazola Makama
Troops of 82 Division/Joint Task Force South-East, Operation UDO KA (OPUK), have received eight rescued kidnap victims from the Cameroonian Armed Forces and arrested a suspected gunrunner in Cross River State, the Nigerian Army has said.
Sources told Zagazola Makama development is contained in a security update on activities in the Area of Responsibility (AOR) of the formation as at Jan. 20.
According to the sources troops of 13 Brigade, deployed on patrol along the Ikang waterways, received the eight victims at about 6:16 p.m. on Jan. 18 at the Pastors Fishing Port general area.
The sources said the victims, who were travelling from Nigeria to Cameroon, were kidnapped by suspected sea pirates along the Cameroon waterways but were later rescued by the Cameroonian Armed Forces after a gun battle with the criminals.
“The rescued victims were conveyed to the troops’ Forward Operating Base (FOB), where they were debriefed and subsequently released,” the sourcss said.
In a related development, troops of 13 Brigade, based on credible intelligence, arrested a suspected gunrunner at Abi Local Government Area of Cross River State at about 8:00 a.m. on Jan. 20.
The suspect, identified as Mr Ojo Friday, was apprehended with a total of 245 ammunition cartridges.
The army said the suspect is from Ochon in Obubra Local Government Area of Cross River State but resides at Abomege in Ebonyi State.
“The suspect and recovered items are currently in custody for preliminary investigation,” the sources added.
The military high command reaffirmed its commitment to sustaining operations to curb criminal activities and ensure the safety of lives and property across the region.
Troops receive rescued kidnap victims, arrest suspected gunrunner in Cross River
Bandits kill two, abduct one in Niger community
By: Zagazola Makama
Armed bandits have killed two persons and abducted another in Kachiwe community, Munya Local Government Area of Niger State, the police have said.
Sources said the attack occurred at about 3:30 a.m. on Jan. 20.
According to eye witnesses, the bandits invaded Kachiwe community in large numbers, shot and killed Ango Abdulkarim, 25, and Abdulkarim Isah, 54, and abducted one Meyaku Ibrahim, 28.
All the victims are Fulani by tribe and residents of Kachiwe community.
“On receipt of the information at about 9:30 a.m., Army troops supported by Police and vigilantes, were swiftly deployed to the scene,” the sources said.
The sources added that by the time the teams arrived, the bandits had fled.
“However, the two corpses were recovered and, on the request of their relatives, handed over for burial,” the sources said.
The security sources said efforts were ongoing through intelligence gathering and monitoring to arrest the perpetrators and rescue the abducted victim.
Bandits kill two, abduct one in Niger community
NDLEA Arrests 77,792 Suspects, Secures 14,225 Convictions in Five Years
By: Michael Mike
The National Drug Law Enforcement Agency (NDLEA) on Tuesday said it has arrested 77,792 suspected drug offenders and secured 14,225 convictions over the past five years, as part of its intensified campaign against illicit drug trafficking in Nigeria.
The Chairman and Chief Executive Officer of the agency, Brig. Gen. Buba Marwa (Rtd), disclosed this in Abuja during the 11th Chairman/Chief Executive Officer (CCEO) Awards and Commendation Ceremony held at the NDLEA national headquarters.
Marwa also revealed that the agency seized more than 14.8 million kilogrammes of illicit substances within the said period, describing the achievement as a major blow to both local and international drug cartels operating in the country.
According to him, 128 major drug barons were among those arrested, noting that their capture had significantly weakened criminal trafficking networks.
He stated that beyond enforcement, the NDLEA had also prioritised rehabilitation and prevention, with over 32,000 drug users receiving professional treatment and counselling. Additionally, the agency conducted more than 13,700 sensitisation programmes under its War Against Drug Abuse (WADA) campaign across schools, markets, workplaces, religious centres, and communities nationwide.
Marwa praised President Bola Tinubu for renewing his mandate, describing it as a strong endorsement of the agency’s work.
He pledged to escalate the fight against drug trafficking during his second tenure, with more intelligence-driven and tactical operations
He said: “We will not rest until every drug baron is behind bars and every illicit substance is removed from our streets.”
At the ceremony, 166 NDLEA officers and 17 state commands were honoured for exceptional performance, bravery, and commitment to duty.
Marwa commended the judiciary, security agencies, international partners, civil society groups, and the media for their support in the fight against drug abuse and trafficking in Nigeria.
The NDLEA boss urged officers to remain diligent, disciplined, and proactive, stressing that the agency would continue to strengthen its operations to protect Nigerian youths from the dangers of illicit drugs.
NDLEA Arrests 77,792 Suspects, Secures 14,225 Convictions in Five Years
Troops receive rescued kidnap victims, arrest suspected gunrunner in Cross River
Bandits kill two, abduct one in Niger community
Police arrest four Liberians over alleged visa fraud in Lagos
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