Fuel subsidy removal unacceptable
The Senate, Trade Union Congress (TUC) and experts disagree with the Nigerian government’s plan to remove petrol subsidy in 2022 and replace it with a N5,000 monthly transport grant to 40 million Nigerians, which translates to N2.4 trillion in a year.
It is absurd for the Federal Government to remove fuel subsidy only to incur more cost regarding its intended cash transfer to poor Nigerians which equals to fuel subsidy of four years.
While the Senate said there was no provision for such grant in the 2022 budget, TUC expressed shock that government could come up with such economic absurdity when negotiations on subsidy removal between it and organised labour is still ongoing.
The Nigeria Labour Congress (NLC) on its part, described the development as an open invitation to revolt and anarchy.
The implementation of the proposed N5,000 monthly grant to 40 million poor Nigerians will cost the Federal Government N2.4 trillion annually, which is 81.71 per cent above the average annual subsidy payment from 2016 to 2019. During the four years, the FG spent N2.93 trillion on fuel subsidy.
In 2016 – N563.3 billion; 2017 – N144.53 billion; 2018 – N730 billion and 2019 – N1.5 trillion.
Why would a supposed people’s government prefer to spent N2.4 trillion in a year in place of N2.9 trillion in four years?
What are the criteria that would determine the beneficiaries of the transport allowance? Does Nigeria has a register for the poor and vulnerable? This might be another clever way to shortchange Nigerians by the executive and their loyalists.
The cash transfers the Federal Government tried to implement in the past were all corruption riddled. Those in charge of such payments only paid to their families, friends and acquaintances while the real poorest of the poor languish in increased poverty.
Nigerians say no to any disguised syphoning of public funds enshrined in a pseudo-social investment programme.
In their reaction, the Nigeria Labour Congress rejected the transport grant, saying government was inviting anarchy.
NLC in a statement by its President, Ayuba Wabba, warned that the government was planning to set the nation on fire, contending that government’s new position was being anchored by the International Monetary Fund, (IMF) and the World Bank.
The Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari had announced that the price of petrol could jump to as high as N340 from February 2022 if the Federal Government succeeded in removing subsidy on petrol.
This situation will definitely be compounded by the astronomical devaluation of the Naira which currently goes for N560 to one US dollar in the parallel market.
The plan by government to increase the price of fuel by more than 200% is a perfect recipe for hyper- inflation and astronomical increase in the price of goods and services. This will open a wide door to insecurity and inevitable citizens’ revolt. This is not an outcome that any patriotic Nigerian wishes for.
This government clearly lacks economic thinkers. How can a government pay N5,000 monthly stipends that far outweighed the subsidy it intends to wipe out?
How can a government that claims it is fighting corruption think of such policy when inflation is skyrocketing and cost of living is beyond the reach of average Nigerians?
The process of executing the cash transfer will, as usual, be riddled with corruption, nepotism and all criminal tendencies associated with this country.
Nigerians must be ready to contend with more corruption, banditry, kidnapping and regional agitations for secession if FG’s obnoxious plan is allowed to see the light of day. The #Endsars protest should remind the FG of what ordinary Nigerians can do if pushed to the wall.