African Examiner
8 January 2012
President Goodluck Jonathan on Saturday announced a 25 percent cut in
his salary, the vice president and ministers as a sacrifice in solidarity with
the masses who are groaning under the pains of hike in general prices
triggered by the subsidy removal.
In a national broadcast on Saturday, President Jonathan said plans were
underway to merge government departments with overlapping functions as
a way of reducing cost of governance.
Jonathan who rose in stout defence of the controversial deregulation of
downstream petroleum sector explained that Nigerians were faced with
the choice of implementing the policy now to guarantee a robust economy
in the near future or subsidize products and inflict more harm on the
economy.
Lamenting the pains occasioned by the subsidy removal, the president
said it was not intended to hurt the masses but to redress lapses in the
nation’s economy, noting that as an elected president with popular votes,
it behooves on him the responsibility to chat a reasonable cause of action
that would reposition the economy.
“As a President, elected and supported by ordinary Nigerians, and the
vast majority of our people, I have a duty to bring up policies and
programmes that will grow the economy and bring about greater benefits
for the people. Let me assure you that as your President, I have no
intention to inflict pain on Nigerians. The deregulation of the petroleum
sector is a necessary step that we had to take. Should we continue to do
things the same way, and face more serious economic challenges? Or
deregulate, endure the initial discomfort and reap better benefits later? I
want to assure every Nigerian that whatever pain you may feel at the
moment, will be temporary.
“The interest of the ordinary people of this country will always remain
topmost in my priorities as a leader. I remain passionately committed to
achieving significant and enduring improvements in our economy that will
lead to sustained improvement in the lives of our people”, he stated.
As part of efforts to cushion the pains, President said he will on Sunday
launch a mass transit bus scheme in partnership with the organized
labour and other stakeholders.
Here is the full text of the broadcast: Dear Compatriots,
1. A week ago, I had cause to address Nigerians on the security
challenges we are facing in parts of the country, which necessitated the
declaration of a state of emergency in 15 Local Government Areas in four
states of the Federation. That course of action attracted widespread
support and a demonstration of understanding. With that declaration,
government had again signaled its intention to combat terrorism with
renewed vigour and to assure every Nigerian of safety.
2. The support that we have received in the fight against terrorism from
concerned Nigerians at home and abroad has been remarkable. We
believe that it is with such continued support that progress can be made
on national issues. Let me express my heartfelt appreciation to everyone
who has expressed a commitment to support us as we strive to improve
on the country’s security situation, and build a stronger foundation for the
future. The recent mindless acts of violence in Gombe, Potiskum, Jimeta-
Yola and Mubi are unfortunate. I urge all Nigerians to eschew bitterness
and acrimony and live together in harmony and peace. Wherever there is
any threat to public peace, our security agencies will enforce the law,
without fear or favour.
3. This evening, I address you, again, with much concern over an issue
that borders on the national economy, the oil industry and national
progress. As part of our efforts to transform the economy and guarantee
prosperity for all Nigerians, Government, a few days ago, announced
further deregulation of the downstream petroleum sector. The immediate
effect of this has been the removal of the subsidy on petrol.
4. Since the announcement, there have been mixed reactions to the
policy. Let me seize this opportunity to assure all Nigerians that I feel the
pain that you all feel. I personally feel pained to see the sharp increase in
transport fares and the prices of goods and services. I share the anguish
of all persons who had travelled out of their stations, who had to pay more
on the return leg of their journeys.
5. If I were not here to lead the process of national renewal, if I were in
your shoes at this moment, I probably would have reacted in the same
manner as some of our compatriots, or hold the same critical views about
government. But I need to use this opportunity as your President to
address Nigerians on the realities on the ground, and why we chose to act
as we did. I know that these are not easy times. But tough choices have
to be made to safeguard the economy and our collective survival as a
nation.
6. My fellow Nigerians, the truth is that we are all faced with two basic
choices with regard to the management of the downstream petroleum
sector: either we deregulate and survive economically, or we continue with
a subsidy regime that will continue to undermine our economy and
potential for growth, and face serious consequences.
7. As you all know, the subject of deregulation is not new, we have been
grappling with it for more than two decades. Previous administrations
tinkered with the pump price of petroleum products, and were unable to
effect complete deregulation of the downstream sector. This approach has
not worked. If it did, we would not be here talking about deregulation
today. I understand fully well that deregulation is not a magic formula that
will address every economic challenge, but it provides a good entry point
for transforming the economy, and for ensuring transparency and
competitiveness in the oil industry, which is the mainstay of our economy.
8. As a President, elected and supported by ordinary Nigerians, and the
vast majority of our people, I have a duty to bring up policies and
programmes that will grow the economy and bring about greater benefits
for the people. Let me assure you that as your President, I have no
intention to inflict pain on Nigerians.
9. The deregulation of the petroleum sector is a necessary step that we
had to take. Should we continue to do things the same way, and face
more serious economic challenges? Or deregulate, endure the initial
discomfort and reap better benefits later? I want to assure every Nigerian
that whatever pain you may feel at the moment, will be temporary.
10. The interest of the ordinary people of this country will always remain
topmost in my priorities as a leader. I remain passionately committed to
achieving significant and enduring improvements in our economy that will
lead to sustained improvement in the lives of our people.
11. I am determined to leave behind a better Nigeria
proud of. To do so, I must make sure that we have the resources and the
means to grow our economy to be resilient, and to sustain improved
livelihood for our people. We must act in the public interest, no matter how
tough, for the pains of today cannot be compared to the benefits of
tomorrow. On assumption of office as President, I swore to an oath to
always act in the best interest of the people. I remain faithful to that
undertaking.
12. To save Nigeria
part of Government, we are taking several measures aimed at cutting the
size and cost of governance, including on-going and continuous effort to
reduce the size of our recurrent expenditure and increase capital
spending. In this regard, I have directed that overseas travels by all
political office holders, including the President, should be reduced to the
barest minimum. The size of delegations on foreign trips will also be
drastically reduced; only trips that are absolutely necessary will be
approved.
13. For the year 2012, the basic salaries of all political office holders in
the Executive arm of government will be reduced by 25%. Government is
also currently reviewing the number of committees, commissions and
parastatals with overlapping responsibilities. The Report on this will be
submitted shortly and the recommendations will be promptly
implemented. In the meantime, all Ministries, Departments and Agencies
must reduce their overhead expenses.
14. We are all greatly concerned about the issue of corruption. The
deregulation policy is the strongest measure to tackle this challenge in
the downstream sector. In addition, government is taking other steps to
further sanitize the oil industry.
15. To ensure that the funds from petroleum subsidy removal are spent
prudently on projects that will build a greater Nigeria
committee to oversee the implementation of the Subsidy Reinvestment
and Empowerment Programme. I sincerely believe that the reinvestment of
the petroleum subsidy funds, to ensure improvement in national
infrastructure, power supply, transportation, irrigation and agriculture,
education, healthcare, and other social services, is in the best interest of
our people.
16. Fellow Nigerians, I know that the removal of the petroleum subsidy
imposes an initial burden on our people, especially the rising cost of
transportation. Government will be vigilant and act decisively to curb the
excesses of those that want to exploit the current situation for selfish
gains. I plead for the understanding of all Nigerians. I appeal to our youth
not to allow mischief-makers to exploit present circumstances to mislead
or incite them to disturb public peace.
17. To address the immediate challenges that have been identified, I have
directed all Ministries, Departments and Agencies of government to
embark immediately on all projects which have been designed to cushion
the impact of the subsidy removal in the short, medium and long-term, as
outlined in the Subsidy Reinvestment and Empowerment Programme
Document.
18. Tomorrow, 8th January, I will formally launch a robust mass transit
intervention programme to bring down the cost of transportation across the
country. The programme will be implemented in partnership with state and
local governments, labour unions, transport owners, and banking
institutions, and supported with the provision of funding at zero interest
rate as well as import duty waiver on all needed parts for locally-made
mass transit vehicles, which will create additional jobs in the economy.
19. We will keep these incentives in place for as long as it takes. I want to
assure you that Government will not rest until we bring down the cost of
transportation for our people. Let me thank the transporters’ associations
that have agreed to reduce transport fares. I have directed the Minister of
Labour and Productivity to work with these associations to come up with a
sustainable plan to guarantee this within the shortest possible time.
20. In addition, I have ordered the mobilization of contractors for the full
rehabilitation of the Port Harcourt
completion of the Lagos-Kano Railway Line. I have also directed the
immediate commencement of a Public Works programme that will engage
the services of about 10, 000 youths in every state of the Federation and
the Federal Capital Territory
21. Government has taken these decisions in the best interest of our
economy, so that we not only have benefits today, but to ensure that we
bequeath even greater benefits to our children and grandchildren.
22. Let me assure Nigerians that every possible effort will be made to
ensure that we march forward, with a collective resolve to build a Nigeria
that can generate greater economic growth, create and sustain new jobs,
and secure the future of our children.
23. This Administration will aggressively implement its programme to
reposition and strengthen our economy, while paying adequate attention
to the immediate needs of our citizens.
24. I assure you all that we will work towards achieving full domestic
refining of petroleum products with the attendant benefits.
25. As I ask for the full understanding of all Nigerians, I also promise that I
will keep my word.
26. Thank you. May God bless you; and may God bless the Federal
Goodluck Ebele Jonathan, GCFR
President
January 7, 2012
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