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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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International

OP-ED: “A RESCUE PLAN FOR SUSTAINABLE DEVELOPMENT”

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OP-ED: “A RESCUE PLAN FOR SUSTAINABLE DEVELOPMENT”

By: Michael Mike

This month, leaders will gather in Sevilla, Spain, on a rescue mission: to help fix how the world invests in sustainable development.

The stakes could not be higher. A decade after the adoption of the Sustainable Development Goals and many global commitments to finance them, two-thirds of the targets are lagging. And the world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030.

Meanwhile, the global economy is slowing, trade tensions are rising, aid budgets are being slashed while military spending soars, and international cooperation is under unprecedented strain.

The global development crisis is not abstract. It is measured in families going to bed hungry, children going unvaccinated, girls being forced to drop out of school and entire communities deprived of basic services.

We must correct course. That begins at the Fourth International Conference on Financing for Development in Sevilla, where an ambitious, globally supported plan to invest in the Sustainable Development Goals must be adopted.

That plan should include three essential elements.

First, Sevilla must help accelerate the flow of resources to the countries who need it most. Fast.

Countries must be in the driver’s seat, mobilizing domestic resources by strengthening revenue collection and addressing tax evasion, money laundering and illicit financial flows through international cooperation. This would provide much-needed resources to prioritize spending on areas with the greatest impact such as education, healthcare, jobs, social protection, food security, and renewable energy.

At the same time, national development banks, regional and Multilateral Development Banks need to come together to finance major investments.

To support this, the lending capacity of these banks needs to triple so developing countries can better access capital on affordable terms with longer timelines.

This increased access should include re-channeling of unconditional reserve assets — or Special Drawing Rights — to developing countries, preferably through Multilateral Development Banks to multiply their impact.

Private investment is also essential. Resources can be unlocked by making it easier for private finance to support bankable development projects and by promoting solutions that mitigate currency risks and combine public and private finance more effectively.

Throughout, donors must keep their development promises.

Second, we must fix the global debt system. It is unfair and broken.

The current borrowing system is unsustainable, and developing countries have little confidence in it. It’s easy to see why. Debt service is a steamroller crushing development gains, to the tune of more than $1.4 trillion a year. Many governments are forced to spend more on debt payments than on essentials like health and education combined.

Sevilla must result in concrete steps to reduce borrowing costs, facilitate timely debt restructuring for countries burdened by unsustainable debt, and prevent debt crises from unfolding in the first place.

In advance of the conference, a number of countries put forward proposals to ease the debt burden on developing countries. This includes making it easier to pause debt service in times of emergency; establishing a single debt registry to strengthen transparency; and improving how the IMF, World Bank and credit-ratings agencies assess risks in developing countries.

Finally, Sevilla must raise the voice and influence of developing countries in the international financial system so it better serves their needs.

International financial institutions must reform their governance structures to enable greater voice and participation of developing countries in the management of the institutions they depend on.

The world also needs a fairer global tax system, one shaped by all governments — not just the wealthiest and most powerful.

The creation of a “borrowers club” for countries to coordinate their approaches and learn from one another is another promising step toward addressing power imbalances.

The meeting in Sevilla is not about charity. It’s about justice, and building a future in which countries can thrive, build, trade, and prosper together. In our increasingly interconnected world, a future of haves and have-nots is a recipe for even greater global insecurity that will keep weighing down progress for all.

With renewed global commitment and action, Sevilla can spark new momentum to restore a measure of faith in international cooperation and deliver on sustainable development for people and planet.

In Sevilla, leaders must act together to make this rescue mission a success.

OP-ED: “A RESCUE PLAN FOR SUSTAINABLE DEVELOPMENT”

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Crime

Illicit drug consignment packaged as green tea intercepted at Lagos airport

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Illicit drug consignment packaged as green tea intercepted at Lagos airport

By:Michael Mike

No fewer than 66 parcels of Loud, a strong strain of cannabis, packaged as green tea have been intercepted by operatives of the National Drug Law Enforcement Agency (NDLEA) at the import shed of the Murtala Muhammed International Airport (MMIA) Lagos.

According to the spokesman of the anti-narcotics agency, Femi Babafemi, the seizure made last Thursday was based on credible intelligence received ahead of the arrival of the consignment at the cargo wing of the airport on 11th May.

Babafemi, in the statement issued on Sunday, disclosed that the NDLEA had watch-listed the shipment, and sustained surveillance around it for over three weeks before inviting other stakeholders for a joint examination last Thursday.

He said the Loud consignment weighing 62.2 kilogrammes was concealed inside wraps of green tea that came from Thailand via UAE on an Emirate Airlines flight.

Babafemi said in another operation in Lagos, NDLEA operatives last Monday intercepted a consignment of 1,665 kilogrammes skunk, a strain of cannabis, along Lekki-Ajah expressway. Two suspects: Gidado Ayinde and Obanla Oluwafemi were promptly arrested in connection with the seizure.

In Kaduna, operatives of the state command of NDLEA on patrol along Abuja – Kaduna expressway last Tuesday arrested 29-year-old Goodluck Nnaemeka with 612 bottles of codeine-based syrup and 2,970 pills of flunitrazepam. In another operation same day, a 52-year-old wanted drug dealer Kabiru Musa (a.k.a KB) was arrested at Kurmin Mashi. A total of 25.7 kilogrammes skunk was earlier recovered from his base.
While a total of 9 kilogrammes Loud was recovered from the spare tyre compartment of an Audi station wagon car marked AAA 975 XU driven by Atari Israel, 45, along Auchi road, Edo state, two young women: Favour Joy and Joy Igwe were last Tuesday nabbed at Ikpoba hill area of Benin city. Recovered from them include: 106.57 kilogrammes skunk; 1 kilogramme Loud; 800 grammes Colorado and 302 grammes of methamphetamine.

Babafemi said the War Against Drug Abuse (WADA) social advocacy activities by NDLEA commands equally continued across the country in the past week.

Meanwhile, the Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Buba Marwa (Rtd) while commending the officers and men of MMIA, Lagos, Kaduna, and Edo commands of the agency for the arrests and seizures of the past week, also praised their counterparts in all the commands across the country for pursuing a fair balance between their drug supply reduction and drug demand reduction efforts.

Illicit drug consignment packaged as green tea intercepted at Lagos airport

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News

One year after Allawa’s fall, displaced residents cry for help as humanitarian crisis deepens in Niger

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One year after Allawa’s fall, displaced residents cry for help as humanitarian crisis deepens in Niger

By U.K. Umar

One year after armed attackers overran Allawa community in Shiroro Local Government Area of Niger State, a deepening humanitarian crisis continues to haunt the thousands of people who fled the invasion and now live in makeshift camps with no hope of return.

The silence that hangs over the once-thriving agrarian community of Allawa is not just physical, it is a silence of abandonment, neglect and despair.

Since the violent invasion of April 25, 2024, residents who escaped death have become Internally Displaced Persons (IDPs), living in overcrowded primary school buildings, market stalls and half-roofed compounds in neighbouring towns such as Kuta, Erena and Gwada.

Education has been disrupted. Food is uncertain. Healthcare is nearly non-existent. And worse, hope is fading.

At an abandoned block of classrooms now serving as a displacement shelter in Kuta, Zagazola Media Netowork, met Malam Musa Yakubu, a 47-year-old farmer and father of seven. He sat quietly under the shade of a neem tree, surrounded by three of his children, all barefooted and visibly malnourished.

“This place was once my children’s school. Now it is our home,” he said, forcing a smile. “We sleep on broken desks, on bare floor. During rainy nights, we cover ourselves with nylon bags. My wife cries often because she cannot feed our children.”

Malam Yakubu said he grew up in Allawa and owned over 15 hectares of farmland before the invasion. Today, he depends on handouts from well-wishers.

“The last time we received food aid was three months ago. Since then, we have been living on roasted yam and wild leaves. My children have not seen a classroom since we fled.”

Standing nearby was Amina Ibrahim, 16, who said she dropped out of Junior Secondary School following the attack. Now, she spends her days helping her mother hawk groundnuts in Kuta. I want to return to school,” she said quietly. “But how can I go to school when we have no home, no books, and no peace?”

‘My primary school is a ghost town’

For U.K. Umar, a former resident of Allawa and the writer of this report, the tragedy is personal.

“I attended Central Primary School in Allawa, which is now in ruins,” he recalled. “My childhood friends are now scattered across IDP camps. Some lost their parents. Some were taken by the attackers. We were not just displaced. We were forgotten.”

Umar said the displacement was not just the result of one attack, but a culmination of years of insecurity that was never addressed.

“What happened on April 25, 2024, was the final blow. Security agencies left, and armed groups moved in. What followed was a complete collapse of community life. Now, we are a forgotten people.”

Terror in the shadows

Reports from Shiroro LGA suggest that terror groups now control mining activities across several wards including Kurebe, Kwaki and Kushaka. Residents allegethat the attackers collect levies from artisanal gold miners up to N2 million per site every two weeks. Those who fail to comply are barred from mining, while others are punished.

“Their boys come during the day to collect fuel and money. At night, they disappear into the bush. They even settle disputes among locals. It is like a second government,” said a displaced youth who asked not to be named.

Just two weeks ago, five persons were reportedly abducted in Kwanta Yashi. Locals say they fear speaking out, as they are caught between hunger and violence.

‘Even water is a privilege’

In the Erena IDP settlement, Hajia Halima Abdullahi, 60, spoke through tears.

“I used to be a trader. I had goats and chickens. Now, I beg for drinking water. We fetch from a stream one hour away, and sometimes, we boil it. Other times, we drink it raw.”

She said many elderly displaced persons have developed hypertension and respiratory infections due to harsh conditions.

“There are no drugs. No doctors. Sometimes, we use herbs. Our children are falling sick every day.” It was also observed that the camps lack toilets, clean water, mosquito nets, and electricity. In some shelters, more than ten people sleep in one small room.

‘We feel abandoned’

There is growing frustration among displaced residents over what they describe as state government indifference.

“All we hear are promises. No concrete plan. No official has told us when we can return. It is as if our lives no longer matter,” said Ibrahim Zakari, a youth from Allawa now living in Gwada.

He appealed to the Niger State Government and the Federal Government to urgently intervene.
We are Nigerians too. We voted. We paid taxes. We built our homes and schools. Why have we been left to suffer?”

“You cannot keep over 20,000 displaced people in hopeless conditions for over a year and expect stability. Children are out of school. Teenage girls are being married off. Boys are joining vigilante groups. Trauma is spreading like wildfire,” he warned.

He called on the Federal Government to declare a humanitarian emergency in Shiroro LGA and mobilise the National Emergency Management Agency (NEMA), as well as development partners, to scale up food, water, and shelter support.

“There must be a concrete, time-bound plan for resettlement. These people deserve to go home with safety, dignity, and support.”

Conclusion

One year after the fall of Allawa, the question remains: how long must a people wait?

As Niger State and the Federal Government grapple with rising insecurity, the forgotten people of Allawa continue to live in limbo displaced, distressed, and dangerously ignored.
Their pain is not history. It is ongoing. And unless urgent steps are taken, the crisis may deepen further.

“We have not died,” Malam Musa Yakubu said quietly. “But we are not living either.”

One year after Allawa’s fall, displaced residents cry for help as humanitarian crisis deepens in Niger

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