Tag: Fuel Subsidy

  • NANS dares FG to remove fuel subsidy, says ‘Nigeria will be shutdown’

    NANS dares FG to remove fuel subsidy, says ‘Nigeria will be shutdown’

    The National Association of Nigeria Students (NANS) on Friday warned the Federal Government Against removing subsidies on petroleum products.

    Zainab Ahmed, the Minister of Finance, Budget, and National Planning, had on Wednesday announced that the government would remove fuel subsidy in June 2022 and replace it with a monthly N5,000 transport grant to about 40 million poor Nigerians.

    Addressing journalists in Abuja, NANS President, Adedayo Asefon said the Federal Government embarking on such a decision will further heighten the hardship in the country.

    The students’ body also rejected the government’s plan to pay N5,000 transport allowance to 40 million Nigerians to cushion the effect of soaring fuel prices.

    “Nigeria will be shut down should the Federal Government attempt to remove the fuel subsidy as allegedly being proposed,” Asefon said.

    “It is merely an attempt to add a new dimension of economic woes upon Nigerians through this removal of fuel subsidy.

    “We wish to state further that before Federal Government can take any decision on the removal of subsidy, it must first demonstrate goodwill by ensuring that the NNPC makes the four refineries we have in this country work at full capacity to determine the exact cost of refining the products in the country.

    “Nigeria cannot continue to use this cause of the implication of the petrol as the benchmark for determining the appropriate price of the products.”

  • FG picks date for final removal of fuel subsidy, proposes N5000 monthly relief fund for 40m poorest Nigerians

    FG picks date for final removal of fuel subsidy, proposes N5000 monthly relief fund for 40m poorest Nigerians

    The Federal Government has proposed June 2022 deadline for the final removal of subsidy on Premium Motor Spirit (PMS) also known as petrol.

    However to cushion the effects of the removal, the government said it will pay a N5,000 relief fund for poorest Nigerians. According to it, the transport subsidy payment of N5,000 to the vulnerable would be transferred digitally for a minimum period of six months and a maximum of 12 months.

    This, the government noted, will happen after the removal of fuel subsidy in June 2022 to give people time to adjust.

    Minister of Finance, Budget, and National Planning, Zainab Ahmed, made this known on Wednesday while briefing State House correspondents after the Federal Executive Council meeting chaired by President Muhammadu Buhari.

    She underscored that as at the last Federation Account Allocation Committee (FAAC) meeting, fuel subsidy costs the country nearly N250 billion per month and three trillion annually as the NNPC remits near-zero naira.

    According to her, this has made the removal expedient. The support fund upon approval from FAAC for 20-40 million Nigerians will not be done in cash.

    She further encouraged states to financially contribute to the N5,000 relief fund to improve the productive abilities of Nigerians.

    On Tuesday the minister said Nigeria will remove fuel subsidies by 2022 and replace them with a N5000-a-month transportation grant to the poorest Nigerians.

    Speaking at the launch of the World Bank Nigeria Development Update (NDU), the minister said the grant will go to about 30 to 40 million Nigerians who make up the poorest population of the country.

    She said the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.

  • What we will do differently to remove fuel subsidy finally in 2022 – FG

    What we will do differently to remove fuel subsidy finally in 2022 – FG

    The federal government (FG) will provide Nigerians with palliatives in the form of transport allowance after removing fuel subsidy from July 2022.

    TheNewsGuru.com (TNG) reports Zainab Ahmed, Minister of Finance made this known on Thursday, saying that this is to cushion the effects of fuel subsidy removal.

    Ahmed also stated that as part of efforts to cushion the effects of fuel subsidy removal in 2022, the FG was planning to do things differently in order to succeed in finally removing fuel subsidy.

    Speaking during an interview on Channels TV’s Politics Today, which was monitored by TNG, the Minister said fuel subsidy is costing the country resources that should be used for education and health.

    She explained how the payment of fuel subsidy is not beneficial to the common man, and described it as a “major drain and waste” on the country’s economy, adding that it is crucial that the country exit from the fuel subsidy regime.

    The Finance Minister said the Petroleum Industry Act (PIA) provides that petroleum products should be deregulated, adding that deregulation will take effect from July 2022.

    “While the act was passed. The president said there would be a one-year timeframe within which implementation will be made, moving from the status quo to the provisions of PIA.

    “In making our plans at least in the 2022 budget, we assumed that this deregulation will take effect from July 2022.

    “We assume that by June we will be able to exit the fuel subsidy, and we have made provision only up till June in the budget for fuel subsidy.

    “And it is important that we exit this subsidy. It is costing us a significant amount of resources that we could have applied for education, health and critical infrastructure. It is a major waste and a major drain on the economy,” Ahmed said.

    Asked if the FG is prepared for a scenario in which labour unions will reject fuel subsidy removal, the Minister said the FG is planning the deployment of compressed natural gas (CNG) vehicles as an alternative to petrol-aided vehicles.

    Ahmed said the federal government is considering the payment of transport allowance to Nigerians for six or 12 months to cushion the effect of fuel subsidy removal.

    She said the transport allowance will be transferred directly to the bank accounts of the right people through the help of a bank verification number and national identity number.

    “What we are doing now is — we’ve been negotiating with labour. We are planning and deploying CNG — which is an alternative to mass transit to PMS.

    “But we are also looking at providing some palliatives for a large number of the population in terms of maybe a transport subsidy for a short period like six months or if it is long, maybe nine months or maximum 12 months.

    “Transport subsidy that would be given directly to individuals. What is constraining us is the issue of registration. The national identity registration process is ongoing and we want to make sure that this subsidy goes into the hands of the right people.

    “That we can make transfers to people using their BVNs, account number and national identity number, and we know that it has gone to the right people.

    “That is part of the things we are negotiating and working on. We are also engaging with the World Bank in designing a programme that will help us to provide succour for at least a minimum of 6 months, maximum of 12 months to enable us to make that transition,” the Minister said.

    Asked when the fuel subsidy regime would end, she said, “If you look at what I said earlier, as from July 2022, there is no provision for fuel subsidy.

    Asked if Nigerians should forget fuel subsidy in July 2022, she said, “Yes. We are trying to see if we can make it earlier. If we are able to get the funding to provide this alternative transport allowance, then we will be able to make it earlier.”

    Minister explains reasons for rising cost of rice; defends Buhari’s constant local, foreign borrowings

    The Minister of Finance, Budget, and National Planning, Zainab Ahmed, on Thursday also said smuggling is responsible for the rising cost of rice in the country.

    The minister who spoke on Thursday on a monitored Channels Television programme said smuggling is affecting the market and hurting the citizens.

    “Unfortunately there is a lot of distortion and the distortion is arising from smuggling of goods into the country,” the Minister said.

    “We have unpatriotic Nigerians that will bring rice that is poor quality, some of it not even fit for human consumption and come and dump it in the market.”

    She also reiterated the Federal Government’s efforts in fighting smuggling, noting that there is a combined team of the Nigerian Customs Service (NCS), Police, the Department of Security Services (DSS) among others to rid the nation of economic saboteurs.

    The Minister also reacted to the fresh borrowing request by the Federal Government which was recently approved by the National Assembly.

    According to her, the Federal Government has created a Medium-Term Debt Management Strategy, noting that the borrowings are not being done by fiat.

    The borrowing that was approved by the lawmakers, the Minister noted, has been in the National Assembly since early this year.

    “It is encapsulated in a plan, we are guided by the Fiscal Responsibility Act that sets the limit of how much you can borrow at any particular time.

    “We have also structured the borrowing to make sure that we have the balance between domestic borrowing as well as external financial borrowings,” she added.

    President Muhammadu Buhari had in May, asked the Senate to approve the loan request.

    The 2018-2020 External Borrowing (Rolling) Plan contained a request for approval in the sum of $36.8 billion, €910 million, and a grant component of $10 million.

    Lawmakers of the upper chamber have since then been making approvals in bits.

    They approved $8.3 billion and €490 million in July. They also approved $6.1 billion in the same month.

  • FG to make curious provision for fuel subsidy in 2022 – NNPC GMD

    FG to make curious provision for fuel subsidy in 2022 – NNPC GMD

    The Federal Government will make provision for subsidy in 2022, the Nigerian National Petroleum Corporation (NNPC) has said.

    NNPC Group Managing Director, Mr Mele Kyari, disclosed this on Wednesday at a public hearing organised by the Senate Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).

    Although no provision was made for fuel subsidy in 2021, he informed the lawmakers that the government had begun a conversation with relevant stakeholders to exit the subsidy regime.

    The NNPC chief, however, stated that the process may not be concluded anytime soon, hence the need to reintroduce subsidy in the 2022 budget.

    On his part, the Chairman of the Senate Committee on Finance, Adeola Olamilekan, raised a concern about revenue generation to curb borrowing to fund the budget.

    The lawmakers also want government agencies to equally focus on revenue generation as they do on spending the government’s money.

    The Senate is holding a three-day public hearing on the 2022-2024 MTEF/FSP, as part of processes to prepare the 2022 budget.

    MTEF sets parameters with which the budget is prepared, including the borrowing plan of the government as it proposes $57 per barrel as crude price and 1.88 million barrels daily oil production.

    On Wednesday last week, the NNPC boss appeared before members of the House of Representatives Committee on Finance for a similar hearing on the 2022-2024 MTEF/FSP.

    At the session, he disclosed that Nigeria would stop the importation of Premium Motor Spirit (PMS), popularly known as petrol, when the Petroleum Industry Act (PIA) comes into full effect, and when the Dangote Refinery kicks off operations.

    Kyari, who also responded to questions on the Dangote Refinery, justified the Federal government’s equity share in the plant.

    According to him, taking equity in Dangote Refinery was well thought out as the nation now has a venture that will ensure the production of millions of litres of petrol in the country.

  • No set date for removal of fuel subsidy – Minister

    No set date for removal of fuel subsidy – Minister

    The Minister of State for Petroleum, Timipre Sylva, has said that there is currently no set date for petrol subsidy removal.

    The minister who said this on Thursday on a monitored Channels Television programme added that the government is being considerate of citizens.

    “I cannot give you a date for now. But the Vice President is actually leading the efforts and very soon, we will tell Nigerians what date the removal of subsidy will kick in.”

    He said the government is also making efforts to put structures in place to cushion the effect of the eventual subsidy removal.

    “We must be considerate of our people; you cannot say because you have the muscle, box everybody down in the room. So, what we are saying is that before doing this, we need to put some structures in place so that the impact on the people can be minimized. We are trying to create an alternative that is cheaper and more affordable.

    “We also think that there should be some palliatives,” the minister added.

  • Fuel subsidy not beneficial to common man – FG

    Fuel subsidy not beneficial to common man – FG

    The Federal Government has again reiterated that subsidy on petrol will soon be withdrawn because it is not beneficial to the common man but favours a few rich individuals and firms.

    Minister of State for Petroleum Timipre Sylva told reporters on Tuesday in Abuja that there is no going back on the decision because the government can no longer afford it.

    Sylva explained that although withdrawal of subsidy will be painful initially, it will pay off for the poor in the long run.

    “Subsidy removal will come with some pains but the question is, can we continue with petroleum subsidy as a country? If we cannot continue, what options do we have?

    “I think the best is take out subsidy. From the government of ex-Military President Ibrahim Babangida in the 80s, it has defied all efforts to withdraw petrol subsidy. Diesel is now deregulated, Kerosine is now deregulated but petrol has defied deregulation. Should we continue with this subsidy?

    “The Federal Government does not lack courage, our President does not lack political will.

    “ Who is really benefitting from subsidy? It is confusing. Some people are benefitting but certainly not the common man. Though it does not really benefit the common man, when you try to remove it, the common man comes out to defend it.

    “ Now, can we carry on with subsidy if you consider the amount of money swallowed by subsidy? If you want to carry on with subsidy, how do we get the money to fund it? The best way out is to take out subsidy because if we don’t, we will continue to beg the question,” the minister said.

    “It was practiced for a few months, but when the prices began to move up, some people started threatening and we had to return to it.

    “ This is a democracy and having deregulated for a few months, we had to step back because this government has listening ears,” he said.

    “The price differential is a major incentive for smuggling and it is very difficult to police the borders. We must find a way out of it; if not, you will continue to keep your price down in Nigeria while the neighbouring countries will continue to feed fat on subsidised fuel from Nigeria,” he said.

    “The PIB is fully on course. We’ve had many meetings with the National Assembly and other stakeholders. Although the National Assembly had earlier promised to pass it in April, but that did not work, I believe that the passage will not go beyond June,” he said.

    He said the administration of President Buhari had attracted about $16.3billion Foreign Direct Investment (FDI) to the oil and gas sector.

    He explained that the Nigeria-Morocco gas pipeline which had been on the drawing board will cost $21billion.

    He said the Federal Government will soon disengage from managing refineries.

    The refineries will either be handed over to Operation and Management Contractors (O and M) or allow Nigerians to decide if the government should sell them or go public at the stock exchange.

    “The refineries in Nigeria have been the weeping babies of the industry but we believe that it is important that they are at least made functional before we can say this is the direction to take.

    ‘So if you have a dead refinery, how do you sell a corpse? It doesn’t make sense. Some people say no it is a dead refinery, so why are they fixing it? So what am I going to do with it?

    “Is it not better for me to at least resuscitate the dead refinery then look for the option of what to do with it? If I sell it, they will say he is selling a dead refinery but now you say let me resuscitate before selling and they say why are you resuscitating it? So whatever you do they will talk.

    “The so called dead refineries were sold by the administration of the late President Umaru Yar’Adua, they shouted and it was reversed.

    “So now we said this time let’s try and fix it and they said why? So you can see the dilemma.

    “What we want to do is ensure that the refineries are functional and when it is, the first thing we want to do is not to run it as a government. We want to put an O and M contractor.

    “At some point, we will put out the advertisement for professional refinery managers to bid for managing it. So, it is not going to be subject to government issues anymore when it begins.”

  • How N1.4bn oil subsidy money was stolen

    How N1.4bn oil subsidy money was stolen

    The ongoing trial of Abubakar Ali Peters, Chairman, Nadabo Energy, for an alleged N1.4bn oil fraud, continued on Tuesday, December 8, 2020, with the fifth prosecution witness, PW5, Abdulrasheed Bawa, telling Justice C.A. Balogun of the Lagos State High Court sitting in Ikeja that the defendant used forged documents to benefit from the Federal Government’s subsidy regime.

    Peters alongside his company, Nababo Energy Limited, were arraigned on December 10, 2012 for offences bordering on obtaining money by false pretences, forgery and use of forged documents to the tune of N1, 464, 961, 978.24.

    The defendant allegedly obtained the money from the Federal Government by falsely claiming that it represented the subsidy accrued to them.

    They pleaded not guilty to the charge preferred against them.

    At today’s sitting, Bawa, who was led in evidence by the prosecution counsel, S.K. Atteh, narrated how the investigation of the oil subsidy regime, particularly as it related to Nadabo Energy Limited, exposed significant fraud in the documents presented by the company to the Petroleum Support Fund, PSF.

    Identifying exhibits J to J9 and another bundle of documents marked by the Court as Exhibit B series, Bawa explained that the “subsidy regime required that oil marketers, who were given permit to import Premium Motor Spirit, PMS, submit bundles of documents in relation to the financing and importation of petroleum products into Nigeria.

    “The defendant, in this case, submitted exhibit B to the Petroleum Products Pricing Regulatory Agency, PPPRA, indicating that they had imported about 14,000 metric tonnes of PMS equivalent to about 19,000,000 litres, and that the transaction was financed by Enterprise Bank Limited through an LP number SPG/DLC/11/0013 dated 27th of October 2011.

    “It is as a result of the documents that were submitted by the defendant that the PPPRA computed the subsidy and the Federal Government of Nigeria paid over N1.4 billion to the defendant through the Sovereign Debt Note.”

    Bawa, in his further testimony, told the court that the EFCC analysed the LC used for the transaction and wrote a letter attaching the said LC to Enterprise Bank, in order to authenticate the genuineness or otherwise of the LC, adding that ” Enterprise Bank responded that the said LC was a forged document.

    “It was sequel to the response that we wrote another letter to the Bank, this time requesting for the transaction documents.”

    While identifying the response as exhibit J, Bawa noted that analysis and comparison of the documents with exhibit B revealed that “the said LC SPG/PSG/11/0013 was actually issued by Enterprise Bank and used by the defendant for importation of 4,800 metric tonnes, which is equivalent to about 6,500,000 litres of PMS.”

    According to him, “From exhibits J3, J4 and J5, particularly J3, the commercial invoice for the importation of the actual 4,850 metric tonnes of PMS, we found out that the actual trader who sold the PMS to the defendant was Petrocam Trading PYT Limited and not Ashland Energy SK, as claimed in exhibit B.”

    He further told the Court that the investigating team found out that the defendant changed the documentation for the importation of about 4,800 metric tonnes of PMS from Petrocam Trading PYT Limited onboard the vessels that brought them to Nigeria as financed by Enterprise Bank to a set of documents that the said LC was used by the defendant to import the purported 14,000 metric tonnes of PMS.

    Justice Balogun adjourned to December 9, 2020 for continuation of trial.

  • Buhari gets World Bank’s commendation over fuel subsidy removal

    Buhari gets World Bank’s commendation over fuel subsidy removal

    David Malpass, President of the World Bank Group, has commended the Muhammadu Buhari Government for removing subsidies on petroleum products.

    He said this in Washington D. C. on Wednesday at the opening press conference for the World Bank at the ongoing 2020 International Monetary Fund (IMF)/World Bank virtual annual meetings.

    Malpass was responding to a question on whether the World Bank saw an opportunity or problem regarding the enormous youth population in Nigeria, alongside rising unemployment and the burden of COVID-19.

    “I compliment Nigeria for tackling the problem of subsidies in the hydrocarbon area.

    “By reducing those subsidies and allowing gasoline prices to rise – it is very hard for governments to do that – there are substantial benefits.

    “It means that there are fiscal savings. It also means that there are environmental benefits that are large and it allows markets to work better and to allocate resources better.

    “So, I think progress is being made in that area and it is valuable,” he added.

    On tackling the economic crisis the pandemic posed for Nigeria, he said that the vital steps were to strengthen the health and the education system.

    According to him, the governance system and transparency were vital in order to reduce the corruption within the system.

    He said that there were opportunities as well.

    “I think each country has to confront or has to think about where it wants to be in a post-COVID world that is going to be very different from the pre-COVID world.

    “That means a different way of people interacting, hopefully better; a greener way of operating; and an emphasis on health care.

    “We have extended the emergency health response to include vaccines and distribution of vaccines for COVID, but it also has the benefit of helping the vaccination programmes in other areas and the healthcare outreach in other areas that will be so valuable.”

    He, however, said that the first priority was to save lives, people’s health and safety.

    He said that would involve procedures like social distancing and masks and proper health care if people contract the virus as well as strengthening of hospital systems.

    Malpass said that looking at the next stage, it would be a prolonged downturn for many countries, as there would not be as fast a rebound in tourism, for example, as many would like to have.

    READ ALSO Buhari slashes foreign travels, estacodes for officials
    He said that there would need to be flexibility in economies, so that people could move to new jobs and positions and the country could be prepared for a post COVID global economy.

    “We know it is going to be different from the pre-COVID economy. We do not know exactly how and that will only evolve over time.

    “So, having countries preserve some of their core industries and businesses, and then keeping families together.

    “We are providing social safety nets to try to help provide cash grants for people,” he said.

    In addition to the steps to strengthen the process and create a resilient recovery was climate and lower carbon rebuilding efforts, which, he said, was very important.

    Also, on what could be done in the recovery period to strengthen and improve global trade as it related to global Gross Domestic Product (GDP), he said a very beneficial step was trade facilitation.

    According to the president, that means trying to keep markets open across borders and where markets are closed and lowering the barriers.

    “So, for example, between Benin and Nigeria, there are high tariff barriers on rice, which is distortive and expensive, so finding steps that can be done to facilitate cross border trade and to allow commerce to take place.”

    That, according to him, means a safe environment, one that is available to all people, that is not discriminatory in terms of the way it operates.

    “I think looking more broadly, it is the commitment by countries around the world, a recognition that commerce is critical to people’s rising living standards.

    “We strongly support moves worldwide to allow more trade and to reduce the barriers to trade,” Malpass said.

    The 2020 Annual Meetings of the IMF and the World Bank Group holding in Washington D. C. began on Oct. 12 and will end on Dec. 16.

  • Nigeria @60: Why Nigerians are now in pains – Rep Nkem-Abonta [INTERVIEW]

    Nigeria @60: Why Nigerians are now in pains – Rep Nkem-Abonta [INTERVIEW]

    As Nigeria commemorates its 60th Independence anniversary, certain issues of national importance have come to the fore, even with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) having to suspend, at the last minute, the planned strike to protest against the pains Nigerians are passing through.

    Issues ranging from the issues of fuel subsidy removal, electricity tariff hike, the suspended strike by NLC and TUC, the drums of secession, the issues of insecurity, the water resources bill, the much-awaited Petroleum Industry Bill (PIB) that was recently sent to the National Assembly (NASS) by President Muhammadu Buhari, and many others have topped national discourse.

    In this explosive interview, the member representing Ukwa East/Ukwa West Federal Constituency, Uzoma Nkem-Abonta addressed these many issues besetting the country Nigeria and alluded reasons why Nigerians are now in pains, even in the President Buhari’s administration that promised change.

    Q: What is your take about the strike suspended by Labour?

    A: If you ask me, I think God loves Nigeria. The strike will cost us a lot of things: injuries and loss of economic activities. Nigeria is at the brink of economic collapse and if we push it further, it will get into depression or recession or whatever the economists call it.

    I think that we should seek a political and economic realistic solution rather than strike. The effect of COVID-19 is enormous, untold; we cannot say it all then another self-imposed sit at home, another self-imposed quarantine, strike or whatever you want to call it, will not be too healthy for us.

    I am not saying they have no justifications to embark on strike. I am not saying they are not pained enough to go on strike. But I think we can look for a middle cause. We can look for a soft landing ground. Because strike, now at this present time that we are struggling to breathe because of COVID-19 and bad governance, will not help us.

    Therefore, I want to plead with the labour unions to sheath the sword. Their grievance is right. The annoyance is right. But they should not because of anger, because they are angry about confused persons who are at the affairs of the nation and throw the nation into darkness. They should be pathfinders, they should be directing, so that we can get out of the quagmire we find ourselves because of bad and maladministration.

    Q: What is your take about the subsidy regime of this administration, considering the fact that former President Goodluck Jonathan tried to no avail to remove fuel subsidy in 2012?

    A: Well, I do credible opposition. I am not among those that do what I call legislative rascality or even executive rascality. No. That they came now to do deregulation or increase fuel [price], I can only tell those that occupied Nigeria to look for a way and apologize to Jonathan.

    They are burying their heads in shame. They used opposition then to spoil the government. I cannot behave like them. I cannot be as rascal as they were in Lagos occupying Nigeria. Shame unto them! Where are they now?

    I cannot occupy Nigeria because deregulation, subsidy removal is the only thing that can put us on a sound footing. But before then, certain things must be put on the ground. So, we cannot say because of opposition, we will condemn sound economic principles. We cannot say because of opposition, we look at settings that would be useful to us and we say it’s not true.

    We can only say do it in the right manner, at a proper time, with the proper settings, put in all the modules, taking into consideration the totality of all. You cannot just do one thing without considering others. It’s like somebody who suffering from appendicitis for example and you are giving that person just panadol. No. You must be able to operate. You bring in anaesthesia to kill the pain. Nobody will do a medical operation without killing the pains. Have they now killed the pains? No! You must do certain things to kill the pains of the operation. They just took Nigerians into theatre and cut us into two with not even panadol. That is why Nigerians are now in pains

    So, we are saying that the government in power should look at those things that will cushion the effects that will kill the pains arising from their actions. It is a mark of insensitivity on the part of the government.

    During the COVID-19, we came out, including the House to say, providers, do not even charge at all. Give the people free light. Bear in mind, is COVID over? So, what are you increasing? That is policy somersault. That shows they are confused. That shows they are not stable. That shows they did not plan before they talk before they made statements.

    We agree here, including the House, say, providers, please, do not charge for now. Even DStv, MTN, all of them; we said please, come down, see what we can do. In other climes, some even paid their landlords some certain percentage for tenants not to suffer. We subsidy all until we get out of the COVID.

    I am saying that the timing is ill. To do it now is as if you do not care about the suffering of the people. We are not yet out of the COVID. So, is that palliatives now, to hike it up? If they had agreed for when Jonathan did in 2012, by now the pains would have gone. We would have been reaping the benefits.

    Opposition does not mean spoil things. It means put them to notice to do good. That is the opposition we are doing. That is PDP for you, and we will continue to do so. We are credible. So now, Nigerians have now known the intentions and realities of Jonathan that he meant well by doing that.

    Q: What would you say about the trillions of naira spent on subsidy since the emergence of this administration, considering the fact that we were that the government was subsidizing fuel?

    A: I cannot find the budget provision for subsidy. In the legislative parlance, it is extra-budgetary expenditures. Now, we are witnessing the highest subsidy regime than ever in all angles: Dollar subsidy, oil subsidy and all whatnot.

    The amount claimed used in subsidy now in this regime surpasses over and above what the previous government has done on subsidy yet they say no subsidy. I do not want to say they lied. Do you know whether it was borrowed or dashed money that they use in subsidising? It could also be borrowed fund or dashed fund or a grant.

    But I cannot find that amount of money in the budget provision for it. So, how did they get it? They still owe us an explanation. They should tell us where they got money to do this subsidy. Then, we will know whether they lied or not. If it turns out now that China dashed us money to do subsidy, would I hold them responsible? I will not.

    Q: Nigeria is 60. Some of you were lucky to be born close to that period while some of us were born after 1960. Is there really anything to celebrate about Nigeria?

    A: I always say it and believe that the big Nigeria can use our unity to grow or use our size to grow. The Westerners, from what I read, are saying, 60-year-old marriage don try. Make dem divorce since dem pikin supposed don grow by now, but by now, we do not even have pikin. We are still crawling.

    At 60, we are crawling because Nigeria is overloaded. At 60 nothing to celebrate because of our structure and we need to restructure if we must move. At 60, we need to see a feasible thing that can impress us. At 60 we are battling with insecurity. At 60 we are battling economic problems. At 60 we are battling with extreme hunger. At 60 Nigeria is still listed as one of the poorest countries.

    At 60 what can we: Is there good water? Is there good road? Is there electricity? At 60 we lack all the necessary things that we need. We are told life starts at 40, and expectancy calls us 60. So that means if you look at life expectancy now Nigeria has always outlived its expectancy going by that set-out standard.

    Saying we are called the Federal Government of Nigeria, how many years after, we are running a unitary system of government. The centre is overloaded. That is why the vehicle Nigeria cannot move. You cannot take a Toyota Corolla and you put something that a trailer should carry; it won’t move. That is the problem of Nigeria. The way Nigeria is structured presently; it is difficult for us to move Nigeria.

    Therefore, at 60 we should come down now, go back to the table and restructure Nigeria. I challenge you.

    We are now in 2020. Now, you look at Nigeria in historical perspective, those 60 ago, in 1960, and look at the economic advancement, the GDP then and now, you will see that we were marching forward how many years ago. I will illustrate.

    In 1983, somebody that is being paid $500 or convert that to naira then; somebody was earning N500 in 1983 it was a big money. As a Corper by the year 1989, 1990, I was earning two hundred and fifty kobos. Now that person that was earning N500 in 1983 lived well. If you convert it to dollar, dollar was at N60 to a dollar, then he was earning over N200,000. Now the person retired as a perm sec and he is earning N250,000 which is now less than $1,000; can’t you see that he was matching back for the last 30 years that he was working because what he earned then when it was N500 was now bigger than the N300,000.

    In 1982, a brand new Peugeot Pan with insurance was N6,500 and they will give you one-year service free; today N6,500 cannot fill the fuel tank of a vehicle, can you see where we are getting to. In 1982 if you are found with N7,000 they will call the police for you, but a schoolboy will hold N7,000 and nobody will think anything happened. So how did we get here, from where and how do we get out of here?

    So at 60, all we should do is gather, go and clean the table and start drawing, there is nothing to celebrate. It calls for solemn gathering, a call for fasting and prayer, we should go to the Eagle Square, call all the pastors and bishops and imams and pray for Nigeria for a change and then look for how to shed the excess load we are carrying, Nigeria is overloaded at the centre and that is why without FAAC or whatever they call it, some states cannot work. They need the FAAC to be able to pay salaries.

    We emulate other persons, other regimes; we should apply it to us. We must decongest Nigeria so that every component of the federalism, should practice true federalism and fiscal federalism where you can grow at your pace and limit and timing.

    If you go to the United States, what obtains in New York is not the same with Texas, or Maryland or Chicago, every state to their own ability or whatever. So we must review all these things for Nigeria to move on.

    As of now, we are not even moving go-slow, we are stagnant, we are rolling back the hill, we need a wedge to put it and then we now remove the excess load so that can move off. If we don’t wedge it, it will roll back and get into a ditch and scatter.

    So the Southwest is saying they are going on a match to ask for what? It could be their right to do the match but my plea is can we come back again and restructure Nigeria. Everybody is saying restructure; nobody has gotten the will to restructure. We need to restructure because what we have now cannot take us much.

    I was speaking somewhere and I told them that this constitution has suffered several alterations because it is not home-grown, because it is not by the people, for the people. If you open the constitution it says we the people of Nigeria, was I a military man then, so how can it be we the people of Nigeria, it was by the military juntas, the supreme military council forced it on us, it is not our constitution.

    And upon attaining democracy, all we should have done was to subject that constitution to a healthy plebiscite, any section that does not fly remains deleted. Every year we come and we are doing alterations, we have done first, second, third, fourth, going to the fifth alteration. So we have multiple constitution pieces here and there we must be able to put them together.

    So why not subject the whole thing to a plebiscite, anyone that does not meet the standard remains out of it, that is a very clean way to do it and then we can now say we the people of Nigeria have done this by us and for us, otherwise this one was done by about 12 members of the supreme military council and some lawyers and they gave it to us and then we used it.

    And there have been several reports of national conference and there were recommendations, where are the reports. Is there anything we can pick from there and work with but we need a collective Nigeria, we need a total Nigeria, we need a united Nigeria, our diversity will now be our strength if we manage it well.

    I am looking forward to when we are going to have a united Nigeria, where would be strong enough to do business so that we can now be the giant of Africa. Now we are oversized people, giants are very healthy and strong; giant cannot be beaten by a small person. Ghana terrorizes us, Cameroon terrorizes us then you say you are a giant, but when small people are beating you, then you are not giant! How can you be a giant when all the small boys are beating you?

    Q: Is there any way NASS can adopt this plebiscite that you talk about on this current constitution?

    A: Well, what we are also doing as tradition as prescribed by this constitution is a kind of plebiscite but on representative capacity. Whatever we do is being sent to the states for the states assembly to also vote; so it is an indirect plebiscite we are doing but in a piecemeal. We pick only sections canvassed by us, debated by us, collected by us, approved by the national assembly and then sent down to states for their inputs then they will vote.

    So we are the representative of the people, the state assembly is also a representative of the people but we know how independent they are with their governors and so on and that is why when they asked for local government autonomy and state autonomy then it failed. Could that be the wish of the people, no; it was the wishes of the governors then.

    Therefore, what I am saying is that we should be more pragmatic and realistic in the constitutional alteration to be meaningful, to be realistic because there are a whole lot of sections that have either outlived their useful that should be amended or otherwise. I will give you a typical example.

    Section 315, particularly 45, listed some items NYSC, Land Use Act, Public Complaint Commission about five items that you cannot tinker or adjust. Now in all realistic nature, the basis for NYSC is it still there, it needs some modifications, all great nations like America started it but they have already modified it, now can you modify it without the constitution, no.

    Land Use Act, what do we do there; it is so stringent the way you can even alter it in the constitution, it provided another different thing in clause 9 in alteration. Can you use that now to amend the constitution, the answer is no and now we are trying to smartly amend the constitution with a bill called water resources bill.

    Q: Tell us about this water resources bill, what is the controversy about?

    A: For me, the controversy about water resources bill is we don’t have jurisdiction to talk about that bill, we don’t have the powers to discuss that bill, it ultra verse our rights because the content is not in the exclusive legislative list which we have cease of domain. Go to the constitution, look at 63, 64 of the exclusive list, you will see the restrictions put therefore. The Land Use Act is an existing law, not just an existing law, tied to the constitution where lands are domiciled in the state.

    The water resources bill is now saying river bank, your borehole, your reservoir, the one in your pot of soup, the one in your fridge, that water belongs to the federal government then Nigeria, we now sit, we won’t even scrawl, we are trying to decongest exclusive list you are now bringing more things to the exclusive list. So when the federal government will now begin to superintend water in my village, in your village and in everywhere and so on, can’t you see that it would be cumbersome then Nigeria will be getting overloaded and overloaded?

    And we are saying by virtue of these constitutional things I mentioned, I am saying that we should not even use that because it will amount to amending the constitution using law; so they should now allow us to bring out land use act from the constitution, amend it and then we can talk about whether water resources bill can come or not.

    The water bill offends constitutional provisions, it offends our sensibility, it offends the federal character; federal character presupposes that the components that form the federation will have some little bit of autonomy and now you are saying the river, the waterfronts and the water banks will be administered by the federal government.

    It is tantamount to saying, before they deleted some clauses, before the last session it was 3 nautical miles from the bank and I asked if you know Bar Beach very well, 3 nautical miles will get to those houses there, that means the whole VI will go. Now they said waterfront, who defines where is now the waterfront?

    Will it now mean 10 feet, 10 metre, 1 km, who is the definition; it will also resort to controversy. So there is everything wrong with the water resources bill and the House must follow our rules. The Supreme Court have said it severally that where there is a prescribed rule, if you do not follow that rule, any decision reached is a nullity; you will begin the journey again.

    And here I contend strongly that the rule was not followed but we will use legislative mechanism to also correct what I deemed legislative mistakes or error. Let’s concede that was an error so we are employing legislative mechanism to correct it and that is what we are going to do.

    Q: People are saying the legislature of today is a rubber stamp one. How are you going to counter this when that time comes, supposing the government of the day decides to use its strength of numbers in the House?

    A: If you are talking about number yes, they may have the numbers that is APC. But I want to also believe that if we are looking at legislation, lawmaking, party sentiments are not and should not be considered.

    Let me also ask you, the man holding the rubber stamp is he not bordered by water; so will he stamp his death warrant? Is APC not in the north don’t they have water? We are saying good laws for the people and it is not about numbers and I am not talking about what we are going to do, I am talking about the breach in the constitution.

    Can we through an Act being proposed in the House amend the constitution, the answer is no. So is the water bill not offensive to the constitution, yes it is. Is the water bill not contradicting land use act, yes it does.

    So we are saying let the water bill go, let’s amend the constitution first so that it can come, if we can amend the constitution then put your bill otherwise. Open exclusive list, 63, 64, you will see that water is not on the exclusive list only to the extent of water passing through two states. The water in my village passed only my state, so you can’t say water, is not even borehole, reservoir you can draw to wash vegetable, feed animals and so on, they give you the licence of the amount of water you need.

    Water is life we are told, land we are told in elementary economics is the first factor of production and now you are saying water in the land, water in the sea, water by the sea bank, water by the shore, water everywhere belongs to the federal government.

    We are saying this in sympathy to the federal government, the federal government you are carrying too much load, we want to help you to take away your load so that you can run, move. We are not saying it because we don’t like the bill, we are saying it because the bill offends our constitution, the bill offends the existing laws, the bill will put too much load on the federal government, we want the federal government to move, we want to lighten their load.

    Q: The PIB has defied passage and signing into law over the years. Why is it taking so long?

    A: I came to parliament in 2008 and I met the PIB and I am doing 16 years now and PIB is still with us, yet we are talking about pump price, deregulation, this and that. Why are we treating symptoms of our sickness when we know the sickness, why are we treating symptoms of our sickness when we have diagnosed the main problem worrying us. If we had done PIB we won’t be worrying about pump price today, it would have been in the past.

    Let me use this opportunity to plead with the federal government to take the issue of PIB seriously. I once said they should treat it as a project, complete it on time that Nigeria may move forward.

    Look at other climes, the Arabs, what they have done with the oil industry, why is our own different? Look at how they have unbundled the oil sector, why is our own different?

    So I plead with them that enough is enough of this joke. If they don’t want to, they should tell us that, no, no, that for life, it is a no go area. You don’t give people hope when you mean otherwise because PIB if achieved will set the thing rolling.

    My fear is that the oil sector is dwindling; it is almost going, so the PIB is even late, it is of no use if the oil trend continues the way it is going and with the scientific inventions are we going to drink the oil?

    So we should turn attention to serious scientific development because people are now talking about electric cars. So we should make haste while the sun is there.

    If I were the government now, PIB should be in the next six months achieve it and let’s see how we can manage the oil again and then see what we can do and this piecemeal may not be good.

    I want to challenge my colleagues to bring proper PIB. I want to challenge my colleagues to do, this is an executive one coming, if it does not satisfy the yearning and aspiration of the people, we get another one, consolidate it and move on.

    May God in His infinite mercy grant the legislators the wisdom, the boldness, the political will to attend to this issue otherwise we would be playing the ostrich that is what we are doing now.

    There is nothing wrong in having legislative-executive convenience but any marriage that is under undue influence or being forced is rape, it is no longer consensual. So we should be able to know the difference.

  • Buhari opens up on provision for fuel subsidy in revised 2020 budget

    Buhari opens up on provision for fuel subsidy in revised 2020 budget

    President Muhammadu Buhari has said there is no provision for fuel subsidy in the revised 2020 budget.

    He said this is simply because the federal government cannot afford it, if reasonable provisions must be made for health, education and other social services.

    Buhari made this known in his address at the first year ministerial performance review retreat at the State House conference centre in Abuja.

    He said the Coronavirus disease (COVID-19) pandemic has led to a severe downturn in the funds available to finance the nation’s budget and that it has severely hampered capacity too.

    “One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of the price of premium motor spirit (PMS) such that the benefit of lower prices at that time was passed to consumers. This was welcome by all and sundry.

    “The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices. This is what has happened now. When global prices rose, it meant that the price of petrol locally will also go up.

    “There are several negative consequences if Government should even attempt to go back to the business of fixing or subsidizing PMS prices.

    “First of all, it would mean a return to the costly subsidy regime. Today we have 60% less revenues, we just cannot afford the cost.

    “The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.

    “Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices.

    “Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice,” Buhari said.

    The President, nevertheless, assured Nigerians that the government is extremely mindful of the pains that higher prices mean at this time.

    “We do not take the sacrifices that all Nigerians have to make for granted. We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst.

    “We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by raising pump price arbitrarily.

    “This is the role that government must now play through the PPRA. This explains why the PPRA made the announcement a few days ago setting the range of price that must not be exceeded by marketers.

    “The advantage we now have is that anyone can bring in petroleum products and compete with marketers, that way the price of petrol will be keep coming down,” Buhari said.