- Marketers shut filling stations
- Loading of product stops at depots
- Shettima: why payment must end now
Fuel scarcity yesterday hit the country following the decision of marketers to shut down filling stations after President Bola Tinubu’s pronouncement that “fuel subsidy is gone”.
Depot owners abruptly stopped loading petroleum tankers.
Lengthy queues resurfaced and commuters resorted to panic buying in filling stations in major cities across the states.
But, Vice President Kashim Shettima reiterated the President’s position yesterday after resuming office.
House of Representatives members and the Organised Private Sector (OPS) backed petrol subsidy removal, saying it was long overdue.
Read Also : Fuel subsidy will end Nigeria if we don’t end it – Shettima
OPS members include the Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN) also endorsed the policy.
The Nigeria Extractive Industries Transparency Initiative (NEITI) added that revenues saved from subsidy should be channelled to education, health, roads and other critical infrastructure.
Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Mele Kyari, said Federal Government owed the company N2.8 trillion in subsidy payments.
He said the Federal Government had stopped funding fuel subsidy, and that the NNPCL can no longer sustain it.
But, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) kicked against the move, which they said has endangered workers’ welfare.
NLC accused President Tinubu of being insensitive and bringing “sorrow to millions of Nigerians instead of hope on his inauguration day”.
Why petrol subsidy must go now, by Shettima
Shettima said the fierce opposition to the removal of petrol subsidy is expected.
He said the administration had anticipated that there will be a pushback, but stressed the need to be resolute.
The Vice President, who spoke with reporters on his first day in office at the Presidential Villa, Abuja, said Nigeria could no longer carry the subsidy burden.
According to him, the subsidy regime has not benefited ordinary folks but has been subsidising the lifestyle of the already affluent.
He said despite the expected opposition from beneficiaries of the subsidy regime, President Tinubu, whom he described as a man of strong will and conviction, would frontally address it.
“The President has already made pronouncements yesterday (Monday) on the issue of the fuel subsidy.
“The truth of the matter is that it is either we get rid of subsidy or the fuel subsidy gets rid of the Nigerian nation.
“In 2022, we spent $ 10 billion subsidising the ostentatious lifestyle of the upper class of society because you and I benefit 90 per cent from the oil subsidy.
“The poor 40 per cent of Nigerians benefit very little and we know the consequences of unveiling a masquerade.
“We will get fierce opposition from those benefitting from the oil subsidy scam, but where there is a will, there is a way.
“Rest assured that our President is a man of strong will and conviction.
“In the fullness of time, you will appreciate his noble intentions for the nation.
“The issue of fuel subsidy will be frontally addressed. The earlier we do so, the better,” Shettima said.
Labour kicks, says it’s insensitive
The NLC and the TUC rejected the policy.
The NLC, in a statement by its president Joe Ajaero, called for its immediate withdrawal.
It argued that the Federal Government cannot remove subsidy without consulting stakeholders and putting measures in place to cushion the effects.
The statement reads: “We at the Nigeria Labour Congress are outraged by the pronouncement of President Bola Tinubu removing ‘fuel subsidy’ without due consultations with critical stakeholders or without putting in place palliative measures to cushion the harsh effects of the ‘subsidy removal’.
“Within hours of his pronouncement, the nation went into a tailspin due to a combination of service shutdowns and product price hikes, in some places representing over 300 per cent price adjustment.
“By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope.
“He equally devalued the quality of their lives by over 300 per cent and counting.
“It is no heroism to commit against the people this level of cruelty at any time, let alone on an inauguration day.
“If he is expecting a medal for taking this decision, he would certainly be disappointed to receive curses from the people of Nigeria, considering this decision not only a slight but a big betrayal.”
NLC rejected the removal of subsidy, saying the implications were too grave to contemplate.
It said: “On our part, we are staunchly opposed to this decision and are demanding an immediate withdrawal of this policy.
“The implications of this decision are grave for our security and well-being.
“We wonder if President Tinubu gave a thought to why his predecessors in office refused to implement this highly injurious policy decision.
“We also wonder if he also forgot the words he penned down on January 8, 2012, but issued on January 11, 2012.
“In light of the foregoing, we advise Tinubu to respect his own postulations and economic theories instead of daring the people. It could be a costly gamble.”
TUC: a joke taken too far
TUC urged President Tinubu to halt the subsidy removal.
In a statement by its President, Festus Osifo and General Secretary, Nuhu Toro, it urged the President to give room for dialogue and consultation.
The statement reads: “The TUC is delighted by the peaceful transition from the Buhari government to the Tinubu administration and across the 28 states of the federation.
“We congratulate Nigerians and the new administration at all levels even as we urge all those contesting the election results across the board to keep following the rule of law as provided in the constitutional and electoral act in seeking redress.
“While listening to Tinubus’s inaugural address, we were at first encouraged, by his pledge to lead as a servant of the people (and not as a ruler) and to always consult and dialogue, especially on key and knotty national issues.
“But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products.
“If, by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far.
“It is not for nothing the Buhari government pushed this to the new administration, but we expect the Tinubu government to be wise on such a sensitive issue and be more explicit in its pronouncement to avoid contradictory interpretation when comparing his written statement, what he said and the provision in 2023 Appropriation Act.
“We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people, hence ought to have been treated with the utmost caution, and should have been preceded by robust dialogue and consultation with the representatives of the working people, including professionals, market people, students and the poor masses.
“Accordingly, we hereby demand that President Tinubu should tarry awhile to give room for robust dialogue and consultation and stakeholders engagement, just as he opined in his speech until all issues and questions – and there are a host of them! – to ensure that they are amicably considered and resolved.
“Nigerian Workers and indeed masses must not be made to suffer the inefficiency of successive governments.”
The TUC said it was worried that President Tinubu did not delve into or reveal his plans on how to tackle the deterioration in industrial relations, particularly in the education, health and judiciary sectors, often resulting in prolonged strikes and industrial actions.
It urged President Tinubu to urgently address the N30,000 minimum wage that has since been eroded by problematic monetary and fiscal policies.
TUC welcomed other aspects of the inaugural speech, such as the promise to tackle terror, create jobs and end extreme poverty.
It also welcomed the promise to make electricity accessible and affordable to businesses and homes.
The union added: “This new administration cannot be seen to be speaking from both sides of its mouth, we urge President Tinubu to be a president with a human face.
“Like always, we will stand by the people and their interests.
“Nigerian workers are hardworking and have remained consistent with productive work regardless of harsh government policies, poor governance and mismanagement of resources that have placed us under difficult living conditions.”
Also yesterday, the House of Representatives backed President Tinubu on the removal of subsidy on petroleum products.
It lauded the President’s courage in announcing the subsidy removal and asked Nigerians to be patient with the new administration.
This followed a motion of urgent public importance moved at the plenary by Jimoh Olajide.
He said it was obvious that the past administration had gone about the issue of subsidy illegally, spending money that has not been budgeted for.
Olajide said: “There is no provision for fuel subsidy in the 2023 Appropriation Act.
“The current 9th Assembly and the past administration had given it (subsidy removal) a legal backing.”