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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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Over 930, 000 persons benefit from ACReSAL Projects in Gombe

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Over 930, 000 persons benefit from ACReSAL Projects in Gombe

Mr Mohammed Fawu, the Gombe State Commissioner of Water, Environment and Forest Resources, has stated that no fewer than 930,162 persons across the state have benefitted from the implementation of the World-Bank-funded Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project in the state within the past three years

Fawu stated this in Gombe on Monday while declaring open a four-day training of enumerators for ACReSAL Third Party Assessment.

Fawu stated that Gombe State has within the three years received disbursements amounting to $27.51 million for the implementation of the project which had impacted positively on the lives of residents.

He said that the projects so far implemented have contributed to combating land degradation, erosion, and climate change while improving on the lives of persons living around communities were projects were executed.

“Gombe State has advanced a wide range of landscape and community-level interventions, including: establishment of 313 hectares of woodlot plantation.

“Upgrading of Kanawa Forest into a biosphere resort and botanical garden, indigenous tree plantations and roadside shelterbelts spanning 110 kilometres.

“Canalization of Balanga Dam irrigation channels covering 6,329 hectares provision of 250 wash boreholes to support irrigation farming.

“ At the community level, we have distributed clean cook stoves to 3,000 households, provided rainwater harvesting facilities to 1,000 households and institutions, and supplied drought-tolerant seeds to 10,000 farmers.

“Solar-powered irrigation schemes, borehole drilling, and Community Revolving Fund activities are ongoing, supporting agro-processing, livestock, and farm enterprise development,” he said.

He added that ACReSAL has strengthened smart agricultural practices through the establishment a farm centre dedicated to training and research.

Fawu commended the partnership between the Gombe State government and World Bank, which he said has impacted several sectors while improving the livelihoods of residents of Gombe State.

On his part, Dr Sani Jauro, the Gombe State ACReSAL Project coordinator said that no fewer than 220 enumerators drawn from the 19 Northern States and the Federal Capital Territory were being trained.

Jauro said that the third-party assessment would ensure unbiased review of the projects so far implemented by ACReSAL from independent party.

He said the assessment was part of the procedure of ACReSAL project implementation meant to review the progress and challenges of the projects by enumerators who are not involved in the day-to-day running of ACReSAL projects.

Jauro urged the enumerators to carry out their jobs with fairness and be just in their report, adding that “the credibility of the exercise lies on your shoulder.”

On her part, the World Bank Task Team Leader, Dr. Joy Agene who was represented by Mr Joseph Abang, Operations Officer with World Bank said the assessment would unravel what has changed since the commencement of the implementation of the project.

Agene urged the enumerators to be steadfast and report accurately in line with the essence of the exercise.

Over 930, 000 persons benefit from ACReSAL Projects in Gombe

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Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

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Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

By; Zagazola Makama

The Police Command in Kano State has repelled an attack on its personnel during an operation to arrest a suspected bandit leader in Bichi Local Government Area.

Security sources told Zagazola Makama that the incident occurred at about 6:30 p.m. on March 22, following a distress call from Tudun Wulli Outpost.

According to the sources, a team of the Anti-Kidnapping Squad, led by ASP Abubakar Musa, acted on credible intelligence and trailed a suspected bandit leader identified as Muhammad, also known as “Senator” or “Kirchi,” who had reportedly visited Tudun Wulli village for Sallah celebrations.

“The suspect was sighted in possession of an AK-47 rifle, but upon attempt to apprehend him, he fled into a crowd,” the source said.

The situation escalated when a mob allegedly attacked the police team with stones and other dangerous weapons, injuring ASP Lawali Hamidu and damaging the windscreen of a patrol vehicle.

“In the process of tactical withdrawal, four persons sustained gunshot injuries and were rushed to General Hospital, Bichi, for treatment,” the source added.

One of the victims, identified as Halima Saidu, was later confirmed dead by a medical doctor, while the others are responding to treatment.

The police personnel involved in the operation were safely evacuated, and additional security deployments have been made to the area to forestall further breakdown of law and order.

The command said the situation has been brought under control, adding that investigations are ongoing, while efforts are being intensified to apprehend the fleeing suspect.

Police repel attack during attempt to arrest suspected bandit leader, one killed in Kano

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Two suspects arrested over killing of cows in Benue

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Two suspects arrested over killing of cows in Benue

By: Zagazola Makama

Security operatives have arrested two suspects over the killing of cows and recovery of suspected stolen meat in Guma LGA of Benue State.

Sources said the suspects, identified as Sylvester Kuman and Nyitor Akaangee, both of Udei Village, were arrested at about 1:00 p.m. on March 22 following credible intelligence.

Items suspected to be cow meat were recovered from the suspects during the operation.

Authorities said efforts were ongoing to track and arrest other accomplices, while investigations had commenced to determine the full circumstances surrounding the incident.

Two suspects arrested over killing of cows in Benue

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