- Labour should not create crisis
By Sunday Ani, Lagos
Yoruba self-determination groups have declared that fuel subsidy regime is unsustainable, urging President Bola Tinubu to stick to its removal.
They said: “If we don’t kill subsidy, subsidy will kill us.”
The associations under the aegis of ‘Oodua Self-determination Groups’ advised the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to sheathe their swords and give peace a chance.
Their spokesman, Rasak Olokoba, of the Oodua Youth Movement, told reporters in Lagos that Labour should give the new government a chance, adding that apart from unfolding plans to bring the refineries back on their feet, palliatives are also underway for the poor to cushion the effects of zero-fuel subsidy.
He also explained that President Bola Tinubu has plans to increase the minimum wage from the current N30,000.
At the conference were leaders of civil society groups, including Comrade Wale Adeoye, Chief Kunle Osodi of Agbekoya, Wasiu Alabi of Oodua Peoples Congress, Jubril of ORF, Afolabi Omotoso of OPC Reformed, Sadam of OPC New Era, Sunday Akinmoye and Taiwo Adeyeri.
Olokoba recalled that during the campaigns, Tinubu had mustered the courage and political will to inform Nigerians that he will take tough and hard decisions.
He said for this year alone, Nigeria had budgeted N11 trillion of its oil revenue for subsidy, adding that “this cannot continue.”
Olokoba said the huge amount that would be saved through subsidy removal can be channelled to infrastructure, housing, education, and healthcare.
He stressed: “To keep the pump price of petrol at N165 per litre, the Federal Government currently spends above N600 as subsidy on every litre of fuel consumed in Nigeria. Our daily petrol consumption in Nigeria is 66.8 million litres. Therefore, petrol subsidy costs the government N40.1 billion every single day and N1.243 trillion every month.
“Due to this subsidy, Nigeria’s economy that depends 90 percent on petroleum exports for its revenue, and one-third of its GDP,has been recording zero revenue from the sector.”
Olokoba said fuel subsidy funding has compounded the soaring debt profile, which now stands at N71 trillion.
He said the lack of deregulation in the oil sector had discouraged investment due to the artificially low price structure caused by subsidy.
The activist pointed out that the Nigeria National Petroleum Corporation (NNPC) became the sole importer of fuel in Nigeria because other major importers boycotted importation as the pricing mechanism became unrealistic and unprofitable.
He said in the spirit of free enterprise, the market forces should dictate the price and consumers should have a choice.
In his view, competition, and not monopoly, will bring about lower prices.
Olokoba said Nigeria should replicate in the oil sector the type of deregulation that shaped investors’ and consumers’ behaviours in the telecommunications industry.
Objecting to the monopoly by the NNPC, he said: “Nigerians are paying for the greed of a cabal on the altar of corruption. Subsidy must go.”
Olokoba said no part of Yorubaland is ready for any unnecessary unrest over fuel subsidy, urging the NLC to dialogue with the government for problem-solving.
He said the groups will sustain the clamour for restructuring, noting that the 1999 Constitution is unsustainable.
Olokoba added: “President Bola Tinubu and APC must make it their priority to commit to the restructuring of Nigeria into true federalism.”