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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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Military

Troops Raid ISWAP Enclave in Dalari, Neutralize Four Insurgents, recover weapons, bombs

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Troops Raid ISWAP Enclave in Dalari, Neutralize Four Insurgents, recover weapons, bombs

By: Zagazola Makama

The Nigerian Army troops of 21 armored Brigade, Operation Hadin Kai have successfully raided an Islamic State of the West African Province(ISWAP) enclave in Dalari, Borno State, neutralizing four insurgents and recovering arms and ammunition.

Intelligence sources told Zagazola Makama, that the troops of 151 Task Force Battalion, in collaboration with the Civilian Joint Task Force as well as the Hybrid forces conducted the Operation in the early hours of March 15, 2025.

The troops under Operation Desert Sanity 4, engaged the insurgents in a firefight at approximately 7:10 a.m., resulting in the elimination of four terrorists, while several others escaped with injuries.

During the clearance operation, the troops recovered: One RPG tube, one AK-47 rifle, one Dane gun, two RPG bomb chargers, three RPG bombs and 504 rounds of 7.62mm NATO ammunition.

No casualties were recorded from the side of the troops.
Troops Raid ISWAP Enclave in Dalari, Neutralize Four Insurgents, recover weapons, bombs

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News

KARAN Appeals for Support for the ministry of Livestock Development

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KARAN Appeals for Support for the ministry of Livestock Development

By: Michael Mike

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) has appealed to President Bola Tinubu to urgently support the Ministry of Livestock Development in getting its office ready.

The association decried that nearly eight months after the establishment of this crucial ministry, the renovation of the permanent office allocated to it for its operations is yet to be started, noting that this delay has impeded the
implementation of essential policies and programmes aimed at promoting the livestock sector and its value chains across Nigeria.

KACRAN, in a statement on Saturday, signed by its National President, Hon. Khalil Bello said: “When the Ministry was established on July 9, 2024, we, Nigeria’s pastoralists, viewed it as a long-awaited answer to our prayers and a significant step towards addressing over 50 years of
neglect in the livestock sector.

“However, the lack of progress since then has been disheartening, preventing the Ministry from fulfilling its critical role in ensuring food security and contributing to
the national economy.

“Currently, the Ministry functions more as a Directorate of Animal Husbandry Services, lacking the resources and infrastructure necessary for it to operate independently and effectively.

“Despite the critical nature of its mission, the allocated office space/building remains unrenovated and a timeline for starting the renovation or completion has not been provided. This situation severely hampers the ability of the Honorable Minister, Permanent Secretary, Directors and staff to coordinate effectively and execute
their responsibilities.

“Moreover, the financial resources allocated to the Ministry for the 2025 fiscal year are
insufficient for the Ministry to achieve its objectives.

“KACRAN is deeply concerned that without immediate attention to these challenges, the foundational goals of the Ministry will remain unattainable. As the political landscape evolves, it is vital that the focus remains on policy timely implementation rather than allowing the future of this very important Ministry to be muddling through uncertainties.

“We urge President Bola Ahmed Tinubu to prioritize the renovation and operation of the Ministry’s office so that the Honourable Minister and staff can effectively promote and develop the livestock sector.

Additionally, we implore the President to invest significantly in the livestock
sector, for enabling the Ministry to actively engage in ensuring food security, enhancing the nation’s GDP, and reducing heavy reliance on imported milk and food products, which costs Nigeria billions of
dollars annually.

“Finally, KACRAN expresses gratitude to President Tinubu for appointing Professor Muhammadu Attahiru Jega as an Advisor on Presidential Livestock Reform Programmes. We hope that under his
guidance, the Ministry can achieve its goals and bring tangible benefits to Nigeria’s pastoralists and the wider population.”

KARAN Appeals for Support for the ministry of Livestock Development

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Crime

Armed Robbers Kill Watchman, Injure Another in Katsina School Attack

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Armed Robbers Kill Watchman, Injure Another in Katsina School Attack

By: Zagazola Makama

Armed robbers attacked Government Secondary School Yashe in Kusada Local Government Area of Katsina State, killing one night watchman and injuring another before escaping with a solar inverter.

Intelligence sources told Zagazola Makama that the attack occurred at about 5:00 a.m. when the hoodlums stormed the school and assaulted the security guards with machetes.

One of the watchmen, Abdullahi Sanusi, 50, died on the spot, while his colleague, Aliyu Ahmed, 65, sustained serious injuries and was rushed to Kankia General Hospital for treatment.

Armed Robbers Kill Watchman, Injure Another in Katsina School Attack

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