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CSO expresses concern over N250b for fuel subsidy, says it is reason FG went into borrowing

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CSO expresses concern over N250b for fuel subsidy, says it is reason FG went into borrowing

 

Civil Society Organisations in Nigeria operating under the aegis of “Civil Society Coalition for Economic Development (CED) has decried the monthly payment of N250 billion for fuel subsidy.
They further identified the subsidy regime as a major challenge that was forcing the Federal government into external borrowings, while expressing optimism that the end of fuel subsidy would recoup funds into the national treasury well enough for developments.
The coalition expressed the concern that if nothing was done by the Federal government of Nigeria to end the regime, it  would further cause economic catastrophy.
In a 7-point communique after a conference of the Coalition which was held simultaneously in Lagos and Abuja, a copy of which was made available to the Guardian on Friday, the Coalition urged the Federal government to be committed to the planned ending of the fuel subsidy regime, adding that it was the right step towards recovering the nation’s economy.
The Coalition which comprised of 82 Civil Society Coalitions insisted that Nigeria’s economy is being about one of the most volatile in the world, recalling that there was a time a barrel of crude oil was sold for $150, but for the past six years, it has reduced to $60, a situation the group lamented, was unsustainable.
The conference, titled: “Fuel Subsidy Removal in Nigeria”, pointed out, would recycle the economy on the part of productivity and growth, if the amount being paid as cost of fuel subsidies were channelled into provision of infrastructure and other social sectors of the economy.
The communique which was signed by the convener, Com. Yusuf Dan Maitama and the Secretary, Com. Badaru Ayewoh further recommended that fuel subsidy regime should be stopped effective from January, 2022.
Part of the communique reads:  “That the resource persons who are world class researchers in the oil and gas industry extrapolated issues bordering on Nigeria’s oil and gas industry, and identified Nigeria’s major economic challenges as that of active fuel subsidy regime.
“In the group discussions, participants were unanimous that Nigeria was the only country in the world that sustained fuel subsidy regime for the past 20 years.
“The fuel subsidy regime was a capitalist and elitist policy that services only the top-heavy, hence, successive governments found it difficult to implement their economic policies.
“It was pointed out that the Federal government of Nigeria spends N250 billion on fuel subsidy every month. The development, discussants averred was largely responsible for national debts as revenue coming into the Consolidated Revenue Fund (CRF) account are used to settle the fuel subsidy.
The group pleaded with the organised labour not to embark on strike on account of ending subsidies, while they asked the Federal government to forward a budget for N5000 grants to be disbursed to citizens to cushion the effect of fuel subsidy removal in 2022.
“That the Federal Government of Nigeria should end fuel subsidy regime effect from 1st January, 2022 in order the save the sum of N250 billion monthly as the economy of Nigeria has become very fragile given the financial burden orchestrated by the subsidy regime.
“That Nigeria is a monolithic economy  as such, revenue earnings must be jealously guarded and which should be channeled into road construction, power, education, health and development of its youth.
“That the organised labour should be considerate and not to embark on strike action in the circumstance that the Federal government has ended fuel subsidy regime, given the reversal of huge resources back into the Federal government coffers.
“That the Federal government and all stakeholders in the oil and gas industry should strictly enforce the provisions of Petroleum Industry Act (PIA), which came into effect after it was signed into law by President Muhammadu Buhari.
“That the Federal government, private and public sectors should embark on sensitisation of Nigerians on the need for immediate removal of fuel subsidy in order to save the nation from further financial hemorrhage.
“The federal government of Nigeria should forward the budgetary provision of N5000 grant to citizens to cushion the effect of fuel subsidy removal to the two arms of the National Assembly for legislative debate before the passage of 2022 budget.
“The Civil Society Coalition commends the Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Limited for his commitment to the stability of oil and gas industry in Nigeria

Politics

2027: Peter Obi Disowns OK Movement Campaign Council, Says ‘It Is Wrong’

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Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has distanced himself from the Presidential Campaign Council reportedly constituted by the OK Movement, saying the initiative was created without his knowledge or approval.

Obi made the clarification on Arise TV on Thursday while responding to questions about the ongoing disagreement between the NDC and the OK Movement over the relationship between the party and its support groups.

The OK Movement, comprising supporters of Obi and former Kano State governor Rabiu Kwankwaso, has maintained that it would not surrender its national, state, local government and ward structures to the NDC.

ALSO READ: NDC Condemns Attack on Members in Enugu, Accuses APC of Sponsoring Thugs

Responding to the issue, Obi said the NDC was the political party to which they belonged, while groups such as the OK Movement, Obidient groups and Kwankwasiyya should operate as support groups for the party.

“First… NDC is the political party we all belong to. And I agree entirely with the position of the leader. OK Movement, Obidient group, Kwankwasiyya, and other supporting groups are supporting groups.

They must play their role as supporting groups supporting the party,” Obi said.

He stressed that the support groups should not operate as political parties or create structures that could compete with the NDC.

“They should not play the role of a party,” he said.

Obi specifically referred to the reported creation of a Presidential Campaign Council by the OK Movement, saying it should not have been established independently.

“We found a situation where one of the supporting groups is then saying using the nomenclature that is forming Presidential Campaign Council. It shouldn’t be,” he said.

Asked whether the campaign council was created with his knowledge or approval, Obi responded: “Not at all. And I said here, it is wrong.”

He further said any major action taken by the OK Movement would require the express approval of both himself and Kwankwaso because the movement represents supporters of the two politicians.

“Your supporting OK Movement is Obi and Kwankwaso. So whatever you do must have express approval of both of us,” he said.

The remarks come amid an ongoing disagreement over the political structures to be used by the NDC and the various support groups backing Obi and Kwankwaso ahead of the 2027 general elections.

 

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2027 Polls: ‘Poor Funding Could Undermine Election Security, Logistics’ — INEC Chairman Warns

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INEC Officials Held Captive Over Missing Declaration Form

The Chairman of the Independent National Electoral Commission (INEC), Prof. Joash Amupitan, has warned that inadequate funding could undermine security and logistics for the 2027 general elections.

Amupitan gave the warning on Wednesday in Owerri, Imo State, while delivering a goodwill message at the sixth edition of the Conference and Retreat for Senior Police Officers, themed, “Developing a Nigeria Police Roadmap for Effective Management of Security During Elections.”

ALSO READ: Where Is Amupitan?’ — Obidients Demand Answers From INEC

According to the INEC chairman, adequate funding is critical to the effective deployment of security personnel and electoral materials needed for the successful conduct of elections.

He noted that although INEC’s funding is constitutionally provided as a first-line charge on the Consolidated Revenue Fund, the scale of the commission’s responsibilities requires sustained financial support.

Amupitan explained that INEC conducts not only presidential and National Assembly elections but also governorship and State House of Assembly elections, in addition to voter registration and the registration of political parties.

He also pointed out that the commission has statutory powers to request the deployment of security agencies for elections and voter registration, making security an integral component of the electoral process.

He said financial limitations could affect what government agencies are able to accomplish, noting that allocations are often determined by what is available and affordable at a particular time.

“Sometimes, it is not what you would like to do that you are able to do because of financial constraints.”

Amupitan further stressed the importance of voter registration, describing it as the foundation of credible elections.

He warned that an inaccurate or outdated voters’ register could undermine the inclusiveness of the electoral process, adding that INEC’s responsibility for elections across the three tiers of government makes election expenditure a collective national responsibility.

The INEC chairman said adequate funding would be particularly important for deploying personnel and electoral materials to local government areas, wards, registration areas and polling units across the country.

According to him, even where security agencies successfully maintain peace, inadequate logistics could still affect the effective conduct of elections.

Amupitan said security and logistics had remained priorities under his leadership, adding that the commission was working with government and security agencies to address operational challenges ahead of the 2027 polls.

He also highlighted the role of the Inter-Agency Consultative Committee on Election Security (ICCES), describing it as a platform for coordinating INEC, security agencies and other relevant government institutions on election security.

He explained that ICCES, which emerged as a coordinating arrangement following the 2011 general elections amid concerns over post-election violence, has since developed into a structured election-security mechanism operating at federal, state and local government levels.

At the national level, the Inspector-General of Police participates in the arrangement, while commissioners of police are represented at the state level and divisional police leadership at the local level.

Amupitan said continued coordination among INEC, the police and other security agencies would be essential to ensuring that security and logistical challenges do not undermine the 2027 general elections.

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Organised Labour Supports Workers’ Demand for N500 PMS Price, N500,000 Minimum Wage

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The organised labour in Nigeria has joined forces with civil servants demanding for a new minimum wage of N500,000 and reduction of petrol price to N500 per litre to address the worsening economic hardship facing workers and their dependents.

Acting under the Joint National Public Service Negotiating Council (JNPSNC), made up of the Nigeria Labour Congress (NLC), and civil servants, as one Trade Union Side (TUS), made a formal request to the Federal Government.

In a letter to President Bola Tinubu, the National Secretary of JNPSNC (Trade Union Side), Olowoyo Gbenga, disclosed that workers were also demanding the immediate constitution of a committee to negotiate a new national minimum wage, ahead of January 2027.

READ ALSO: Tanker Drivers Suspend Strike after FG Intervention

The NLC insists that their position is realistic and legitimate.

According to the workers, the recent increase in fuel prices to N1,430 per litre and above in some locations had further worsened the cost-of-living crisis. They gave government till Wednesday, September 30, 2026, to take action on their demands, warning that the prevailing hardship is creating palpable tension among workers and Nigerians.

The JNPSNC, which includes Nigerian Civil Service Union (NCSU); Medical and Health Workers Union (MHWU); Association of Senior Civil Servants of Nigeria (ASCSN); National Association of Nigerian Nurses and Midwives (NANNW); among others, said the removal of fuel subsidy three years ago had triggered an astronomical increase in fuel prices which triggered multiplier effects on the prices of essential commodities in the economy.

Other unions in the council are Amalgamated Union of Public Corporations (AUPC); Civil Service Technical and Recreational Employees, AUPCTRE; Nigeria Union of Public Service, Reportorial, Secretarial, Data Processors and Allied Workers, NUPSRAW; National Union of Printing, Publishing and Paper Products Workers, NUPPPPROW; and National Union of Agriculture and Allied Employees, NUAEE.

The council said the situation has made life increasingly unbearable for workers, adding that the provision of food palliatives is not a sustainable solution to the economic crisis.

It said: “It has dawned on Nigerian workers that the provision of palliatives, such as bags of rice, Indomie, vegetable oil, garri, among other edible foods, is as good as weaponising Nigerians with poverty because it is a pyrrhic intervention which is unsustainable, inaccessible to the majority of Nigeria’s population and also limited to political cronies.”

The workers argued that a more sustainable intervention would be to reduce the cost of fuel to N500 per litre, saying the measure will have a multiplier effect on the economy.

“Consequent upon the above, it is preferable that the Federal Government provides an intervention that will trickle down to all Nigerians by making fuel available at an affordable amount, as low as N500 (five hundred Naira),” they said.

The council identified the restoration of workers’ purchasing power, improved productivity and service delivery, promotion of integrity and accountability, and the reinforcement of trust and industrial peace as major reasons for its demand for improved remuneration.

‘Govt must look inward on fuel price’

On fuel prices, the workers said government should “look inward and stabilise the prices of fuel to an affordable minimum,” arguing that fuel remains an essential commodity with significant implications for the Nigerian economy.

“As a matter of reality, the current hardship being faced by the hapless Nigerian workers is caused by the astronomical increase in the price of Premium Motor Spirit to as much as N1,430.00, or more per one litre (this is a killing amount),” the council stated.

It further called for an intervention fund for stakeholders in the oil sector to stabilise fuel prices and eventually bring the pump price down to N500 per litre.

The council also said government could adopt another description for the intervention if the term “fuel subsidy” was considered unacceptable.

“The fuel intervention fund will give the opportunity to every Nigerian to benefit from the intervention fund because it will have multiplier effect in the life of every Nigerian and will naturally trickle down to the downtrodden and all the remotest parts of the country,” it said.

The council also endorsed a position attributed to the NLC President, Joe Ajaero, on measures to address the fuel crisis.

Ajaero was quoted as saying that “Nigeria, as an oil-producing country, has sufficient local refining capacity, even as this substantially resides with the private sector.”

He also said: “As a nation, and as a people endowed with enormous fossil resources, we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales.”

According to the NLC position cited by the council, “As part of the process of creating this buffer government should sell sufficient crude in Naira to our local refineries; expand our national storage capacity in pursuance of meeting energy emergencies and security. These measures will create jobs, economic value as well as deal with mutating security challenges.”

The statement further said: “There is nothing wrong with government subsidizing the needs of citizens, especially in emergency situations like this. At the moment, there is no oil-producing country we know of that has not intervened or come up with sustainable palliatives in one way or the other in these perilous times.”

The NLC position also stated: “Government is making extra money in the international spot market (of between USD35 and 40 per barrel above the budgeted figure). This translates to trillions of Naira a month.

“On a long term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity.”

On wages, the council demanded immediate introduction of a wage award covering federal, state and local government workers.

“Wage award as an urgent intervention and upward review of salaries and allowances of all serving public servants in the Nigerian public service should be provided with immediate effect to cut across all federal, state and local government workers,” it said.

The JNPSNC proposed that the minimum salary payable to an officer on Grade Level 01, Step 1, should be N500,000 per month under the 2027 salary template.

The council also called for harmonised wages across ministries, departments and agencies, MDAs, while urging that the review be encouraged at the state and local government levels.

The JNPSNC urged the president to direct the National Salaries, Incomes and Wages Commission, NSIWC, to commence discussions with the Nigeria Labour Congress, NLC; Trade Union Congress of Nigeria TUC; JNPSNC; and other relevant stakeholders on the wage award and upward review of salaries and allowances.

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