…..Seek probe of subsidy regime
From Okwe Obi, Abuja
The Inter Party Advisory Council (IPAC), has frown at the removal of oil subsidy by President Bola Ahmed Tinubu, saying that yank off was ill-timed.
IPAC National Chairman, Yabaji Sani, at a press briefing yesterday in Abuja, however, advised the government to engage stakeholders on the appropriateness of jettisoning the subsidy regime, in addition to putting in place targeted palliative measures to cushion the effect of the eventual removal.
Sani charged the government to set up a forensic enquiry on the subsidy regime, to unravel the secrecy and perception of corruption in the sector.
“…in our candid opinion, it would rather have been done at a more suitable time in view of the fact of the PIA 2022 and appropriation Act 2023, the extant laws, as well as Mr. President’s pronouncement in his inaugural speech was clear that he will govern by the rule of law.
“However, on the issue of subsidy, IPAC advises the new administration to quickly engage with the stakeholders on the appropriateness of jettisoning the subsidy regime, in addition to putting in place targeted palliative measures to cushion the effect of the eventual removal.
“Most importantly, the new government must as a matter of urgency set up a forensic enquiry on the subsidy regime to unravel the secrecy and obvious perception of large-scale corruption in the sector.
“The NNPC, CBN, Marketers and the players in the value chain of the subsidy era should be properly audited.
“Government should also address the issue of oil theft, metering of the sector infrastructure, while pursuing fiscal policy measures to progressively manage the economic interventions.
“Going forward, the NNPC and all relevant agencies should be made to operate transparently and accountable in its dealings.
“In addition, the federal government as a matter of priority should strengthen the law enforcement agencies, particularly the anti-graft agencies to effectively enforce their mandates.
“These interventions will reinforce the confidence of Nigerians that subsidy removal will not be more fuel for corruption,” he said.
Gentlemen of the Press, I want to welcome you to this Press Briefing on behalf of the Council and General Assembly of the Inter Party Advisory Council (IPAC), a body of all registered political parties in Nigeria and a critically stakeholder and incubator of political leadership at all levels across Nigeria.
Let me also seize this opportunity to appreciate the media for your continued support and patriotic service to our fatherland. On this note, may we please observe a minute silence in honour of High Chief Raymond Dokpesi, the Chairman and founder of Daar Communications and Raypower, who passed on a few days ago in Abuja. Chief Raymond Dopkesi was a rare personality, whose generosity of spirit, industry, philanthropy and contribution to human and media development in Nigeria has left an indelible legacy. May his soul and the souls of all the faithful departed rest in peace, Amen!
You are aware that following the inaugural speech of the President and Commander-In-Chief of the Armed Forces, His Excellency Asiwaju Bola Ahmed Tinubu GCFR, where among other pronouncements on the vision and policy direction of the new administration, clearly stated that subsidy for petrol is gone, the Nigerian National Petroleum Corporation (NNPC) on May 31, 2023, adjusted the petrol price template ranging from N488.00 per litre in Lagos and N537,00 in Abuja and other variations across Nigeria.
You will also recall that NNPC is the sole supplier of petrol in Nigeria and by implication, other marketers of the product naturally took a cue and adjusted their pump prices to reflect the NNPC template.
It is also not surprising that Nigerians following the adjustment continued to react to the development, with different opinions for and against the subsidy removal.
A good number of Nigerians have argued that whereas the subsidy removal is necessary for the nation’s economic growth, the timing and manner of the adjustment is at variance with the expectations of the Nigerian masses in view of the current living condition of the people vis-à-vis the already tense socio-political environment.
For us at the Inter Party Advisory Council (IPAC), the issue of subsidy removal though at the heart of the economic development of Nigeria and a necessary evil, and of course Mr. President must have been overwhelmed by the urgency of the need to address the dire economic situation of the country to have expressed his desire.
However, in our candid opinion, it would rather have been done at a more suitable time in view of the fact of the PIA 2022 and appropriation Act 2023, the extant laws, as well as Mr. President’s pronouncement in his inaugural speech was clear that he will govern by the rule of law.
There is no doubt that Economics believe in a market economy, in which production and prices are determined by unrestricted competition between privately owned businesses.
However, this scenario exposes the local economy to the dictates of global oil price shocks, hence, subsidy regime over the years became a strategy to cushion the effect on the citizens.
According to the National Bureau of Statistic, highlights of the 2022 Multidimensional Poverty Index survey reveal that: 63% of persons living within Nigeria (133 million people) are multi-dimensionally poor. The National MPI is 0.257, indicating that poor people in Nigeria experience just over one-quarter of all possible deprivations. As of today, many States are struggling to pay the N30,000 minimum wage of workers.
According to a recent KPMG report, “Nigeria’s unemployment rate is expected to rise to 41% in 2023”. The report also revealed in part that there are expectations for GDP to continue to grow at a relatively slow pace of 3% in 2023 owing to the slowdown in economic activity that typically characterizes periods of political transition in Nigeria.
In this scenario, removal of subsidy in a product as central as petrol, will no doubt, increase the cost of goods and services and further worsen the living conditions of Nigeria.
As a partner in progress, IPAC in its last General Assembly of May 17, 2023 approved the constitution of a technical committee to set an agenda for the new administration in order to help it manage the inherited huge debt, dwindling economy and growing unemployment and divisiveness. At the end of the exercise, IPAC will make public its robust Agenda for the new administration.
However, on the issue of subsidy, IPAC advises the new administration to quickly engage with the stakeholders on the appropriateness of jettisoning the subsidy regime, in addition to putting in place targeted palliative measures to cushion the effect of the eventual removal.
Most importantly, the new government must as a matter of urgency set up a forensic enquiry on the subsidy regime to unravel the secrecy and obvious perception of large-scale corruption in the sector. The NNPC, CBN, Marketers and the players in the value chain of the subsidy era should be properly audited. Government should also address the issue of oil theft, metering of the sector infrastructure, while pursuing fiscal policy measures to progressively manage the economic interventions. Going forward, the NNPC and all relevant agencies should be made to operate transparently and accountable in its dealings. In addition, the federal government as a matter of priority should strengthen the law enforcement agencies, particularly the anti-graft agencies to effectively enforce their mandates. These interventions will reinforce the confidence of Nigerians that subsidy removal will not be more fuel for corruption