Subsidy removal: What FG promised, what Nigerians want

Tribune

8 January 2012

Subsidy removal: What FG promised, what Nigerians want

Precisely eight days ago, the Federal Government removed subsidy on petroleum products. In this analysis, STEPHEN GBADAMOSI gives a detailed sector by sector scrutiny of what the Federal Government promised to do with the funds gained from the subsidy ouster, vis-à-vis the fears, hopes of Nigerians and what they really want the government’s economic policy to reflect.

If there was a section of the Nigerian populace that was not jolted by the surreptitious removal of fuel subsidy last Sunday by the Goodluck Jonathan-led administration, it was, perhaps, petroleum marketers and those who work in the core oil sector. Nigerians woke up with rude shock on that New Year day to learn that the subsidy they were still warning the government about had been removed. The previous night, petrol outlets had created artificial scarcity; they stopped selling before afternoon in many parts of the country. It was their sudden reappearance to sell in the morning of January 1, with an upward review of the price from N65 per litre that hinted the people that the deed had been done. By the time it fully dawned on the masses that a new regime of petroleum and other commodities’ prices had caught up with them, protests had begun in many parts of the country. As early as Monday, protesters had taken over major roads in Ilorin, Lagos, Kano and Abuja and by Tuesday, the protests had turned bloody, with a casualty said to have been recorded in Ilorin, Kwara State capital. The orgy of violence has continued, despite that the Nigeria Labour Congress (NLC) had announced that in conjunction with its counterpart in the trade sector, Trade Union Congress (TUC), it would commence full strike on Wednesday, 11 January, in defence of the Nigerian masses over the subsidy removal.

Government has, however, remained adamant, citing its earlier defence that it took the decision in the best interest of Nigeria and Nigerians. According to a policy paper of the government, termed Subsidy Reinvestment and Empowerment Programme (SURE PROGRAMME), seen by Sunday Tribune, “a robust programme structure has been developed to ensure adequate oversight, accountability and implementation of the various projects” meant to make the subsidy removal worth Nigerian’s expected pains.

Read on -- very complete article