Yesterday, the former Labour Party (LP) presidential candidate Peter Obi, the Nigeria Employers Consultative Association (NECA) and former General Secretary of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Chief Frank Kokori, backed petrol subsidy removal.
Obi reportedly said,
“I’ve actually been in support of the removal of subsidies right from the President Goodluck Jonathan era when I was a member of the Economic Management team.
“If you have followed me very well right from the time I was a member of Jonathan’s economic management team, I consistently maintained that subsidy should be removed because I see it as organized crime.
“People were just stealing the resources of the country and I showed it empirically in my statistical analysis that we were not consuming the amount of fuel they claimed we consumed.
“I also gave them the ‘tooth pain’ removal analogy that if you approach a dentist to remove a painful tooth, he will apply a local anaesthetic to numb the area around the tooth so you do not feel pain.
“It’s not the same thing as pulling the tooth forcefully, the pain you feel will be different.
“For me, I will go with the approach of the dentist, while supporting the removal of the tooth because I wouldn’t want to go through the pain of a forceful removal.
“Recall that even when Jonathan’s government wanted to remove it they came up with various relieving policies like Sure-P and others.
“If you read my manifesto you will see clearly how I planned to remove subsidies.
“I will govern with the people and show them statistically and empirically what we are going to save, and what we are going to do using the savings to better the suffering masses.
“The problem in Nigeria is that often government tells the masses to suffer and sacrifice, for a better future; but in future things get worse.”
NECA said subsidy removal could unlock over N6 trillion in revenue annually.
Director General, Adewale-Smatt Oyerinde, said subsidy over the years has neither served the interest of the average Nigerian nor has it promoted enterprise sustainability, growth and competitiveness.
He stated,
“NECA commends the policy thrust of the new administration as enunciated by President Bola Ahmed Tinubu, during his inaugural address.
“Some of the key issues raised that were germane to the survival of organized businesses and the economy at large include the plan to unify the exchange rates, review of a multiplicity of taxes, strive towards a higher GDP growth rate, improving accessibility and affordability of electricity, investment in infrastructure, the establishment of agricultural hubs, deepening engagement with Organized Private Sector and removal of fuel subsidy.”
Oyerinde emphasized that subsidy removal could unlock over N6 trillion in revenue annually, which can be channeled into infrastructure development.
He added that reports have shown that less than three per cent of Nigerians (the super-rich), benefit from the subsidy regime.
It urged the government to fast-track the provision of immediate short-term palliatives.
Kokori believes the subsidy on petroleum products ruined the country.
He said,
“Nigeria has no money. You pay subsidy and only a few individuals are enjoying all the billions of naira.
“They are the cartel and they have properties all over the world, private jets, everything and you are subsidizing fuel for the whole of West Africa, up to Sudan and Central Africa.
“There is no country in Africa that does not sell fuel for up to one dollar per litre. They have killed Nigeria with subsidies. What did we gain from it?
“Nigeria owes the entire world and we are servicing loans with all the money that we have, so we are broke, we don’t even have money to subsidize fuel; there is no money.
“We all know that Nigeria has been bleeding due to bad government. We are not supposed to be suffering like this; everybody is suffering.”
