Agitations against the proposed removal of subsidy on petroleum products may be in vain, as President Goodluck Jonathan had already decided on the policy long before it was introduced to the public.
Niger State governor Aliyu Mu’azu Babangida said this yesterday at the 10th edition of the National Roundtable for Good Governance organised by The Initiatives, a group of past and serving lawmakers in the House of Representatives. “Deregulation in an Emerging Economy” was the theme of the discourse.
The governor, who was speaking in support of removal of fuel subsidy, said the move by the presidency was not post-election. Aliyu noted that even before the April general elections, the plan had been agreed upon by the presidency but was kept away from the public so as not to influence their voting pattern in the elections.
“The subsidy removal was decided before the elections but you know a politician is always afraid of elections. So it was put at bay till after elections but, before then, people had already made their decisions on the matter,” he said.
Aliyu, who served as chairman of the roundtable, said the policy would help drive the nation’s development transformation in the context of Vision 20:2020 through “equity, curbing of wastages, corruption and all forms of nepotism”.
“It’s time for decision,” he stated, adding that, in Nigeria, it was essential to curb the greed of the rich through such policies. The fact that the recently released list of beneficiaries of the subsidy on fuel shows is that it was only the rich and those close to the corridors of power that are benefitting from the funds provided by the government.
He said that the importation of fuel was being encouraged by this class of people who are benefitting from it. “Governance is for the poor, what you need to do for the rich is regulate his appetite,” the governor said.
Suggesting to the federal government that future policies must be debated before they are finally taken, he explained that removal of subsidy also applies in other sectors such as agriculture. “Some of them are busy making too much money while some of us – those in Borno, Zamfara, Dutse and other border states – don’t even know what this subsidy is about, because either they don’t get it or they get it at exorbitant rates. How do we take care of the weak and ensure that the vulnerable and retirees are well taken care of?”
Subsidy removal, according to Governor Aliyu, “will free government from the bondage of continuous financing of extensive projects which are best suited for private investment by encouraging efficiency and effectiveness in resource utilization. Other benefits, he said, are: reducing government borrowing while raising revenue; promoting healthy market economy; improving returns on investments and broadening enterprises’ share ownership, thus engendering capital market development.”
He urged Nigerians to assess the policy based on “its potential to contribute to our general wellbeing: accelerated economic growth in terms of GDP, employment generation, poverty reduction, massive development, diversification of revenue resources and facilitation of MDGs”.
The governor, who is the chairman of the Northern Governors’ Forum, implored Nigerians to strive to make the project work, adding that “there are many people who do not want us to succeed because, if we succeed, all the prejudicial impression they have created about us would have been punctured.
“We must strive not to fail because if we do, it will mean that the black man has failed.”
Delivering a lecture as one of the discussants at the event, the governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, debunked claims that Nigeria was broke, but added that if the government does not spend prudently, the nation will find itself in a state of bankruptcy.
Sanusi who was represented by CBN’s director of research, Mr. Charles Mordi, said that, by removing fuel subsidy, Nigeria would be conserving its resources for the future.
“Nigeria is not yet broke, and that is why we are saying that Nigeria should not waste its resources. We should manage whatever we have so that we can avert the issue,” he said.
Professor Ganiyu Garba, a professor of Economics at the Ahmadu Bello University, lamented that Nigeria does not give investors incentives to develop refineries within the country.
He said a situation where importers are rewarded more than domestic refiners does not motivate them to want to develop refineries, adding that the government must also ensure that enforcement of its laws are taken seriously.
“The economic man will be stupid to invest in refining domestically when he can make more money from importing fuel into the country,” he said.
Several members of the audience however expressed opposition to the proposal. Former lawmaker in the Sixth Assembly, Hon Dino Melaye, urged President Jonathan to respect the wishes of the people and put an end to the removal of subsidy debate, adding that, if it insists on going ahead with the plan, the government should gear up for an insurgence like the Arab Spring.
“The problem we have is a leadership problem,” he said.
Earlier, while delivering his welcome address, dean of the Faculty Board of The Initiatives, Hon Eseme Eyiboh, said that in its resolve and commitment to good governance in the country, The Initiatives had put this edition together to partner with stakeholders in searching for a workable, feasible and functional road map towards the nation’s transformation.
In a related development, the National Economic Council (NEC) yesterday maintained that there was nothing anyone could do to stop the removal of fuel subsidy.
The council,? comprising mostly state governors had, at its last meeting, thrown its full weight behind the planned removal of the subsidy.
Anambra State governor Peter Obi, who briefed State House correspondents after a meeting of NEC that lasted for about eight hours at the Presidential Villa, Abuja,? said the council’s position remained that subsidy removal was innevitable, considering existing realities.
He said the thinking of the council was that the benefits that Nigerians would derive from subsidy removal would far outweigh the temporary hardships that they would face.
On the recurring issue of epileptical power supply, the governor disclosed that Council’s decision was that while the 36 states of the federation were free to generate power individually, they would be required to obtain licences before they would be allowed to distribute, or partner with private investors in the alternative.
He said a committee headed by Cross River governor Liyel Imoke had been set up to look at all outstanding issues in that regard.
Other members of the committee are governors Kassim Shettima, Olusegun Mimiko and Patrick Yakowa of Borno, Ondo and Kaduna states respectively. The committee also has Governor Gabriel Suswam of Benue, minister of power, Prof. Barth Nnaji and the chief economic adviser as members.
On the security situation in the country, the council emphasized the need for greater collaboration between the states and the federal government.