From Sola Ojo, Kaduna
The Arewa Youth Assembly (AYA), a northern group, on Thursday, described the subsidy removal by President Bola Ahmed Tinubu’s led federal government as a “tough” but “courageous” decision whose time has come.
The group then called for understanding, calm, and the need for Nigerians to support the Tinubu administration over the removal of subsidy on premium motor spirit (better known as petrol), and the adjustment of pump prices across the country.
AYA Speaker Mohammed Salihu Danlami told reporters in Kaduna that the removal of the subsidy was a sign of good faith and continuity for President Bola Ahmed Tinubu to keep up with the subsidy removal, which foundation was laid by the immediate past administration.
The Group also commended the efforts of Nigerian National Petroleum Corporation Ltd in addressing the nation and promptly making adjustments to the price of PMS to tackle the artificial scarcity of the commodity by unscrupulous businessmen.
Danlami noted that “Nigeria previously pay an average of N120 billion monthly on petrol subsidy. Subsidy removal conforms with the Petroleum Industry Act (PIA Act) 2021, which provides for total deregulation of the petroleum downstream section to drive investment and growth.
“The fact that subsidy has been the reason why Nigeria has remained stagnant for years is that it benefits only a few rich Nigerians who don’t even need the subsidy.
“Few top politicians and key government officials were making billions of dollars from subsidy while Nigerians were unable to afford quality education, healthcare, infrastructure, electricity, telecommunications, stable power supply, agriculture and high rate of unemployment and extreme poverty.
“So with subsidy payment, even if oil prices increase in the global market, Nigeria and Nigerians benefit nothing because the gains from the increase in oil prices are channelled to paying subsidy.
The subsidy has fatal effects on inflationary pressures on the economy, which negatively impacts the exchange rates and results in all kinds of untold sufferings for the Nigerian Masses and pushes millions of youths into different forms of terrorist activities and insurgency.
“The continued payment of subsidy will lead Nigeria to continue to borrow and remain in debt. Between January and August of 2021, a total of N905.27 billion has been incurred as subsidy costs, according to the Federation Account and Allocation Committee reports.
“As of 2022, the cost of servicing debt in Nigeria with the federal government was N2.597 trillion, whereas revenue was N2.4 trillion. With this, no meaningful development in other key areas is feasible.
“We, therefore call on Nigerians to support the removal of subsidy to save all, and desist from politicising it, or bringing in religious or ethnicity, because the danger that awaits if we continue to pay subsidy is coming for all Nigerians irrespective of their political inclination, tribe or religion.
“It is a tough and painful decision to make, but certainly the right step towards the right direction, to saving not just a few but the entire nation, to restoring the glory of Nigeria as the leader of Africa”, he emphasised.